GEORGE TOWN: A 2.43-hectare plot of state land near Gurney Bay that failed to attract any bidders is unlikely to be re-auctioned, as the concessionaire now has sufficient cash flow to finish the RM852mil Air Itam–Tun Dr Lim Chong Eu Expressway bypass project.
Penang Chief Minister Chow Kon Yeow told the state assembly on Monday (Nov 2) that Consortium Zenith Construction Sdn Bhd (CZC) has not requested a second auction.
The initial public auction was held at CZC's request during a period of cash flow constraints to fund ongoing construction.
Replying to Lim Guan Eng (PH – Air Putih), Chow clarified that the project is now over 95% complete using the company's internal funding. Main construction work is finished, with remaining items, including street furniture and finishing touches, expected to wrap up by April 2027 before a Public Works Department road safety audit.
The land, identified as Plot 7A (PT858, Section 2) in Bandar Tanjung Pinang along Jalan Peter Paul Dason, was put up for auction on Oct 7 with a reserve price of RM1,200 per square foot, valuing the parcel at RM313mil.
Addressing questions about the failed auction and market valuation, Chow said the reserve price matched both the land value set out in the original project agreement and recent local market benchmarks, such as the acquisition along Jalan Pangkor.
He added that the state had extensively advertised the tender across local newspapers, land office portals, and Rehda networks.
While Chow declined to speculate on how the unbid auction might affect nearby property values, he notedthat market observers have cited the high reserve price and specific plot location as potential factors behind the lack of interest.
