This article first appeared in City & Country, The Edge Malaysia Weekly on May 6, 2024 - May 12, 2024

Walking along the shoreline of Seri Tanjung Pinang 1 (STP1) on Penang island with the cool sea breeze blowing is a welcome respite from the hustle and bustle of city life. Developed by Eastern & Oriental Bhd (E&O), STP1 features a plethora of amenities and facilities, as well as residential and commercial products that showcase E&O’s attention to detail and its luxury and high-end lifestyle offerings.

In an exclusive interview with City & Country, managing director Kok Tuck Cheong and director of development and construction management Michael Tan Hwee Hian talk about how the company is continuing that theme and concept in its next reclamation project, Andaman Island.

STP is a large development that has two phases totalling 1,000 acres. STP1 is a 240-acre reclamation project of shorefront land with an estimated gross development value (GDV) of RM5.5 billion. Phase 2 is a 760-acre reclamation island, which has been branded as Andaman Island, with an estimated GDV of RM60 billion.

Kok says this reclamation project was proposed many years ago. “The project was first mooted under the administration of the late Tun Lim Chong Eu (former chief minister of Penang) in 1982. Then, it was awarded to a party under a concession.

“The Asian financial crisis came and the project stalled; the concession was stopped. Finally, it ended up with E&O Group in 2003. Within two years, we reclaimed almost 240 acres of shorefront land and built over the next 20 years what we deem a historic water development landmark [in STP1]. We have more than 3,000 homes, no less than 5,000 residents and, at its peak, more than 20 nationalities residing there.

“[STP1 is] the precursor to Andaman Island. It is the platform that allowed us to demonstrate our prowess, the exacting standards of delivery and innovation, because no one in Penang could have thought, from concept to realisation, of an island; we made it happen. That is something the state ought to be very proud of.”

He emphasises that owing to its sustained presence and work done over the years, E&O knows what its buyers want.

“We have curated projects in response to customers’ needs, and not dump something that we want them to buy into,” says Kok.

Furthermore, E&O’s desire is not to just build for now but for the future lifestyle of its buyers, and this has been a hallmark of the developer’s ethos. “Community spirit is very much embedded into what we develop here,” Kok says.

While the reclamation exercise is challenging, the developer has considered all issues with the input of experts, who advised on the project. Therefore, nothing is by chance but by design, Kok says. Government support has also been crucial to the success of the overall project.

Andaman Island is being developed in two phases: the 253-acre Phase 1 and 507-acre Phase 2. Reclamation work for Phase 1 started in 2015 and was completed in December 2019; it is ongoing for Phase 2. The entire reclamation exercise will be completed by December 2028.

“Financing is always a challenge to reclaiming an island, especially of this magnitude. We were thankful and lucky to have secured a joint venture partner in KWAP (Retirement Fund Inc). They are our 20% joint venture partner on our Phase 1 development of Andaman Island. They are certainly an investor with long-term vision,” says Kok.

The estimated GDV is RM20 billion for Phase 1 and RM40 billion for Phase 2. The entire master-planned development may take about 35 years to complete.

Phase 1 will feature elements such as a park, commercial hub and canal. Kok believes Andaman Island will also provide the right environment for residents and visitors to experience “tranquility, calm, space and, ultimately, serene living”.

Tan says: “We will have three districts in Andaman Island (Phase 1): Shoreline, Canalside and Gurney Green, which is part of the so-called central district of the commercial hub. We are very careful with this master plan in terms of connectivity and walkability. We are trying to do a 15-minute city.

“To promote cycling and walking, we have designed walkways and cycling lanes that are four metres wide, away from the vehicular lane and with trees to provide shade.”

Shoreline has more residential products and will take up about 80 acres, Gurney Green will take 75 acres and Canalside will have residential and commercial products, taking up around 46 acres. There will be a 37-acre central park adjacent to the canal, Tan says. “The architectural influence of projects in Shoreline will incorporate modern visuals inspired by the design principles of colonial homes, which are known for their high ceilings, large windows, courtyards and extensive landscapes.

“Unique to Shoreline, all landed homes are equipped with attic storage to cater for the needs of well-travelled individuals or large multigenerational families.

“In addition, Shoreline homes are thoughtfully designed with conveniences in mind. Amenities such as linear children’s parks and pocket parks, communal back gardens and green corridors facilitate community interaction and promote a healthy lifestyle through jogging and bike paths.

“Furthermore, the inclusion of lifts in all residential units demonstrates an understanding of the diverse needs of residents, from those with mobility issues to simply offering convenience on days when stairs are less appealing.”

In January and February this year, E&O launched Phase 1 and Phase 2 of its landed products: Fera courtyard terraces; and Senna semi-detached homes. There will also be villas in Shoreline but details will be announced at a later stage.

Fera offers 290 three-storey terraced houses and will be launched in phases. So far, two phases have been launched. Phase 1, which has a GDV of RM105 million, saw 28 units launched and sold. Phase 2, which has a GDV of RM89 million, saw 61% of its 23 units taken up. All houses sit on freehold individual titled land.

The houses will have the living and dining spaces above street level, with an elevated terraced garden and balcony. The car porch can accommodate four cars and each house will come with solar panels.

Fera has three house types. Type A are 24ft by 75ft intermediate units with a land area of 1,798 sq ft and built-ups of 3,615 sq ft. The selling price starts from RM3.38 million.

The two other designs are corner units. Type B homes measure 26ft by 75ft, with land areas ranging from 2,809 to 3,283 sq ft and built-ups of 4,015 sq ft. The selling price starts from RM4.312 million.

Type C corner homes measure 33ft by 75ft, with land areas of between 3,315 and 4,015 sq ft and built-ups of 5,173 sq ft. The selling price is from RM5.041 million.

At Senna, the 70 three-storey semidee homes are freehold with individual titles and will also be launched in phases. Two phases of Senna have been launched so far, with all units fully sold. Phase 1 (GDV: RM39 million) has eight units and Phase 2 (GDV: RM47 million) has 10. The living and dining spaces are placed at the rear of each house, adjacent to a green space, and solar panels will be installed.

Senna Phase 1 homes measure 36ft by 79ft, with a land size of 3,488 to 3,864 sq ft and built-up of 5,337 sq ft. The selling price starts from RM4.8 million. Phase 2 homes measure 31ft by 79ft, with a land size of 3,154 to 4,413 sq ft and built-up of 4,636 sq ft. Selling price starts from RM4.64 million.

Kok says a new product — a resort condominium — in the Shoreline district is still in the planning stages.

In addition to the Shoreline products, E&O previously launched two high-rise projects — The Meg in 2021 and Arica Executive Homes in 2023, which have been fully sold and are located in Gurney Green.

The RM650 million The Meg sits on four freehold acres with commercial title and has two towers — the 27-storey Tower A and 34-storey Tower B have a total of 1,020 serviced apartments ranging in size from 567 to 897 sq ft and the starting price is from RM950 psf. There are 14 retail lots in Tower A and they have built-ups of between 1,616 and 2,213 sq ft.

On the other hand, the RM410 million Arica features a single 45-storey tower with 380 units; it sits on two acres and occupies commercial-titled freehold land. Built-ups range from 947 to 1,259 sq ft, with the selling price starting from RM736,000.

Sustainability will encapsulate Andaman Island, where everything will be developed to ensure a holistic and harmonious living environment.

“Our dedication to sustainable development is exemplified through our pursuit of the Platinum GreenRE Certification across Andaman Island projects, integrating renewable energy, efficient water management and sustainable materials to underscore our commitment to environmental stewardship,” says Kok.

“Andaman Island represents our vision for the future, catering for the increasing demand for eco-friendly living spaces in Penang and aligning with the state’s 2030 vision to combine the tranquility of nature with the convenience of urban living.”

While E&O has a strong presence in Penang, the developer is also busy in other parts of the country and abroad, where it has three geographical footprints — the Klang Valley (KLCC, Damansara Heights and City of Elmina), Johor (Medini) and the UK.

Kok says: “The Medini project is a joint venture between Khazanah and Temasek; we still have some plots of land left for development. It is still ongoing but all our landed homes have been sold already. We have 12 acres left and are still in the planning stages.

“In the Klang Valley, we have two projects: one is Conlay in KLCC and the other is The Peak. Conlay is a 491-unit condominium offering branded and private residences. The Peak is a 54-unit, high-end low-rise condominium development in Damansara Heights.”

He adds that the City of Elmina has 65 acres on which landed homes will be developed and details are being finalised.

“In London, we have The Lincoln Suites, which comprises 54 serviced apartments, in Kingsway. It is five to seven minutes’ walk to Covent Garden in Holborn, and located across from the London School of Economics and adjacent to the law courts,” says Kok, adding that the serviced apartments are operated by a hotel operator.

“We also have a 1.2-acre plot in Hammersmith in Zone 2, for which we have obtained approval for a mixed development with hotel and offices. The project is still in the planning stages.”

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