Friday, 10 January 2014

Batu Kawan Lifted To New High By IKEA

Finally... Penangites' dream comes true. 

After years of "rumour", IKEA is edging closer to open its first store outside Klang Valley in Batu Kawan.

Just in this morning, Penang CM Mr LGE has announced in a press conference that the state government and Penang Development Corporation (PDC) will sell a piece of 245-acre land in Batu Kawan to a joint venture company Aspen Vision Land Sdn Bhd-Ikano Pte Ltd for RM483.9mil.

Ikano owns & operates IKEA franchises in Malaysia, Singapore & Thailand, while Aspen Vision Land is a 51% subsidiary of Aspen Group & 49% associate company of Ivory Properties Group. Thus, Ivory has gained an indirect access to Batu Kawan development.

Aspen Group seems to be a new property developer with a few upcoming condo projects in Penang.

       Upcoming condo in Penang by Aspen Group

The 245-acre development planned in Batu Kawan will include:
  • 30 acres for IKEA store and phase 1 shopping mall
  • 45 acres for phase 2 shopping mall
  • 170 acres for mixed development
If not mistaken, IKEA & Ikano Power Center in Mutiara Damansara measure about 13 acres.

The whole development is expected to be completed in 10 years but IKEA store is to be completed in 5 years or sooner.

       IKEA Batu Kawan - at southern part?

Of course this is the best news for Batu Kawan so far, compared to other earlier investment like Honda, Premium Outlet, KDU & University of Hull.

While property may start to cool down in the country, I don't think this is the case for Seberang Perai, especially SPT & SPS. The mixed development by Aspen-Ikano will surely sell like hot cakes.

Direct beneficiaries of increased property demand in Batu Kawan are GOB, Ivory, Malton & Paramount, who already have lands in this area. Other surrounding listed property developers include Tambun Indah, Ecoworld, Mahsing & IJM Land.

It will not be a surprise when the news of other developers acquiring land within or nearby Batu Kawan start to flow in later.

Now people may start to imagine Batu Kawan to be like Damansara.


  1. Ivory Properties Group Bhd has 49% stake in Aspen Vision Land Sdn. Bhd

  2. Thanks for the info, I'll add this into the article.