THE Seri Tanjung Pinang Phase 2A (STP2A) development and the reclamation of STP2B and STP2C will provide Eastern & Oriental Bhd (E&O) with future launches for the next 15 years and beyond.
E&0 said reclamation works on STP2A, a massive property development off Tanjung Tokong in Penang island, are almost completed.
STP2A is expected to have a gross development value of over RM17 billion and will be developed over 15 years.
E&O said a detailed master plan is being finalised to create Penang’s foremost investment, residential, commercial and tourist destination.
Managing director Kok Tuck Cheong said in a statement recently that the development of STP2A and reclamation of STP2B and STP2C are key to value enhancement of the group.
Kok said the reclamation of STP2B and STP2C will open the company to more joint venture (JV) opportunities like the JV master development of STP2A it has with Retirement Fund Inc (KWAP).
E&O’s 78.78 per cent-owned Tanjung Pinang Development Sdn Bhd (TPD) had in 2017 signed a sale and purchase agreement to sell 20 per cent of STP2A to KWAP as a strategic investor for RM766.02 million.
TPD was granted a concession by the Penang government to reclaim and develop about 307.56ha off the foreshore near Mukim 18 of Tanjong Tokong.
The reclamation work is divided into three phases, namely STP2A, STP2Band STP2C. STP2A and will comprise gross area of about 102.31ha.
Meanwhile, Kok said E&O’s property development segment has shown improvement for the period under review despite soft market conditions.
The company recorded cumulative sales of about RM251 million for the third quarter ended December 31 2018, which is 6.45 per cent higher year-on-year.
Kok said the E&O Luxury Living Campaign launched in July last year recorded successful sales figures for selected E&O landmark properties in Penang, Iskandar Malaysia and Kuala Lumpur City Centre.
On the hospitality front, E&O said its namesake, Eastern & Oriental Hotel (E&O Hotel) in Penang, will be undertaking extensive renovation and upgrading works.
The Heritage Wing will be closed from this month and re-open in December this year with new F&B concepts and fully-refurbished suites.
“These updates are designed to keep the E&O Hotel relevant to the evolving luxury travel market.
At the same time, careful consideration has been taken to ensure we retain E&O’s treasured style of timeless elegance that is unique to this cherished heritage landmark,” said Kok.