Eastern & Oriental Bhd managing director Kok Tuck Cheong. Courtesy Photo

KUALA LUMPUR: Eastern & Oriental Bhd (E&O) says the maiden launch for Seri Tanjung Pinang Phase 2A (STP2A) a massive property development off Tanjung Tokong in Penang island, is scheduled for the end of 2020.

Managing director Kok Tuck Cheong said, reclamation of STP2A was completed last month.

Kok said that E&O is currently finalising the masterplan design, incorporating several bold, game-changing components to anchor STP2A as the truly unique and first choice destination to live, play and work in Penang.

“The completion of reclamation of STP2A in November 2019 marks a significant milestone for the group’s next growth trajectory. Our resources are focused towards the creation of a new prime seafront address, building further on the success we achieved in STP1," he said in a statement last week.

Developed in 2 phases, Seri Tanjung Pinang is an exemplar masterplanned seafront development, the first of its kind in Penang’s history with its showcase of luxury residential enclaves and vibrant retail promenades.

STP2A is expected to have a gross development value of over RM17 billion and will be developed over 15 years.

The lifestyle developer reported a loss of RM10.7 million for the first half ended 30 September 2019 (1H2020) as compared to pre-tax profit of RM32.5 million in the previous financial period.

Kok said the group’s earnings for the current financial period was dampened by the unrealised foreign exchange loss amounting to RM16.3 million as compared to unrealised foreign exchange gain of RM0.2 million in the previous corresponding financial period.

Total revenue achieved for the period decreased to RM271.4 million as compared to RM379.4 million recorded for the first half ended 30 September 2018.

Kok said, despite a muted property market this year, E&O continue to focus on inventory reduction and managed to sell RM181.9 million worth of properties in 1H2020.

"This is a strong indication that our projects continue to command a market premium and appeal to astute investors. We anticipate continued demand for properties in strategic locations backed by a reputable brand name. As such, we recently unveiled Conlay serviced residences centrally located in Kuala Lumpur City Centre and across from the Conlay Station Integrated Development. This is our second joint venture residential development with Mitsui Fudosan Group widely regarded as Japan’s largest real estate developer and is designed by renowned Kerry Hill Architects," said Kok.

E&O believes the strong fundamentals of Conlay; fine craftsmanship, a choice location and the partnership of two leading brand names make for a prime investment choice, said Kok.