PETALING JAYA: Farlim Group
(Malaysia) Bhd is deepening its exposure to Penang’s urban growth with a new joint venture to build a commercial development in the state’s northeast district, tapping into rising demand for transit-oriented projects.
In a filing dated Dec 2, 2025, the group said it had entered into a joint venture agreement with Fortune Lander (M) Sdn Bhd to develop freehold land in Mukim 13, Daerah Timur Laut that is currently vacant. The gross development value of the project is estimated to be RM160mil.
The project will comprise commercial units, semi-detached shops and bungalow-style shop units, alongside an adjacent parcel, with an estimated gross development cost of RM131.1mil.
Farlim said internal feasibility studies showed the site is “strategically located in an established commercial area with good infrastructure and connectivity”, making it suitable for a transit-oriented development (TOD) concept.
The group added that the project aligns with its focus on “sustainable growth, portfolio diversification, and community-centric development” while enhancing market visibility and brand positioning in Penang.
Under the agreement, Fortune Lander, the registered owner of the land, will receive a fixed guaranteed return of RM15.94mil or 10% of the saleable area value, whichever is higher.
This will be settled through a mix of cash and property units, with Farlim funding the development entirely from internal resources.
The project is subject to regulatory approvals, including land rezoning and building plan consent from local authorities, as well as financing approval.
Construction is expected to begin within three months of obtaining building plan approval, with completion targeted within 42 months from commencement, subject to a possible three-month extension.
Critically, Farlim said the development will not affect its share capital, gearing or near-term earnings for the financial year ending 2025, but is expected to “contribute positively to future earnings” once the project gains momentum.
No shareholder approval is required, and the board noted that directors and major shareholders have no interest in the deal.
While the group acknowledged the usual execution and joint-development risks, the board said it would “take reasonable steps” to manage them, expressing confidence that the project is “in the best interest of the Company” as it expands its Penang landbank.
