54
PERENNIAL REAL ESTATE HOLDINGS LIMITED
Annual Report 2015
BUSINESS REVIEW
OTHER MARKETS
In the Period, Perennial made its maiden venture into
two new markets, being Malaysia and Ghana. Perennial
is now invested in the Penang Waterfront Integrated
Development in Malaysia, and the Accra Integrated
Development in Ghana.
Maiden Foray into Malaysia
In April 2015, Perennial entered into a 50-50 JV with IJM
Land Berhad, one of the top developers in Malaysia,
to acquire and develop a freehold waterfront site into a
large-scale integrated mixed-use development in Penang
of about 4.1 million sq ft of GFA, marking Perennial’s first
investment into neighbouring Malaysia.
Positioned as a large-scale integrated waterfront project,
Penang Waterfront Integrated Development will be
built at an estimated total development cost of over
MYR3 billion (approximately S$1 billion). It is expected
to house retail, entertainment, recreational, residential,
business, hospitality andMeetings, Incentives, Conventions
and Exhibitions (“
MICE
”) components.
Well-Governed State with Strong Fundamentals
Penang is a highly-urbanised, industrialised and
economically important state in Malaysia. High-tech
manufacturing and tourism are the twin engines of
growth for Penang, which thrives as one of the top
foreign direct investment (“
FDI
”) locations in Malaysia.
Despite Malaysia’s economy facing severe challenges
in 2015, due to factors including declining commodity
prices and a slowdown in China, Penang continues to
be resilient to the economic downturn, due to proactive
measures taken by the state government to bolster
growth. In the long term, the economic outlook for
Penang remains healthy.
Excellent Location and Connectivity
The waterfront site is served by Tun Dr Lim Chong Eu
Expressway and is located in close proximity to the
highly-utilised Penang Bridge, one of two road bridges
connecting Penang Island to mainland Malaysia.
Its good accessibility will be enhanced by a proposed
Light Rail Transit System to be implemented under the
MYR27 billion (approximately S$9 billion) Penang
Transport Masterplan
17
, making the integrated
development easily accessible from the nearby Penang
International Airport, as well as Penang city centre.
Leveraging on Penang’s reputation as a thriving tourist
destination, renowned for its rich heritage, architecture,
beaches and food, the state government plans to
position Penang as a pre-eminent MICE destination.
The development of an international-standard large-
scale convention and event centre within the integrated
development, which will be the largest indoor event
venue to be built in Penang, aligns with and supports the
government’s broader plans.
With the convention centre as the nucleus, the integrated
development will also comprise two hotels, a Grade ‘A’
office tower, a retail mall with thematic street concepts
and waterfront F&B, as well as premium residential
towers. The residential towers, which are expected to
enjoy strong purchaser demand, will provide a sizeable
population catchment at the doorstep of the integrated
development.
Strategic Priorities in 2016
The focus this year in relation to Penang Waterfront
Integrated Development will be to refine the detailed
design, secure the land title, and prepare for the
application of necessary government permits as part of
overall project development.
Upon completion of development works in 2021, Penang
Waterfront Integrated Development will be a unique large-
scale destination in Penang offering a comprehensive suite
of facilities to locals and tourists alike.
17 The “Recommended Transport Master Plan Strategy”, March 2013 (Finalised Version), Penang Transport Council.
