PETALING JAYA: Farlim Group (M) Bhd
is deepening its exposure to Penang’s urban growth with a new joint venture to build a commercial development in the state’s north-east district, tapping into rising demand for transit-oriented projects.
In a filing dated yesterday, 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 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.
