This article first appeared in The Edge Malaysia Weekly on October 14, 2024 - October 20, 2024

LOCATED just minutes away from Queensbay Mall is the site of the RM10 billion Penang World City (PWC), first unveiled in November 2011. To be built on both existing and reclaimed land, PWC was to be jointly developed by Ivory Properties Group Bhd (KL:IVORY) and Tropicana Corp Bhd (KL:TROP) — then Dijaya Corp until a name change in 2013 — via Tropicana Ivory Sdn Bhd on a 51:49 (later 45:55) basis.

In July 2011, the then newly listed Ivory Properties received the go-ahead to undertake a mixed-use development spanning more than 102.56 acres in Bayan Mutiara from Penang Development Corporation (PDC), the development agency of the state government. Of the 102.56 acres, 35 acres would be reclaimed for a mixed-use development. According to news reports back then, this would have made Ivory Properties the largest developer on Penang island.

In a joint statement in 2011, the developers said PWC would be completed over the next eight years and consist of residential and hotel components, a shopping mall, office suites, office tower, retail spaces and an open mall with a boulevard.

Its first phase, an eight-tower residential block named Tropicana Bay Residences, was first previewed in February 2013 and saw very encouraging response.

Tropicana Ivory also sold three parcels within PWC to Asia Green Group, which has since completed two projects in the development itself (see map), with plans to launch a third project.

There were several delays, with news reports in 2016 stating that due to technical issues, the reclamation works were expected to only commence sometime in mid-2017. The reclamation, which was expected to take three to five years to complete, was estimated to cost RM200 million.

However, not long after, both Tropicana Corp and Ivory Properties exited PWC separately. In its Bursa Malaysia filing in 2018, Tropicana Corp said it had sold its 55% stake in Tropicana Ivory to Hemat Tuah Sdn Bhd for RM70.7 million. A year later (October 2018), Ivory Properties offloaded its 45% stake in Tropicana Ivory for RM56 million, also to Hemat Tuah Sdn Bhd.

The Edge is given to understand that the reclamation part of PWC has since been halted.

According to sources, Ivory Properties subsequently found itself in financial straits and it is believed that several MBI-linked companies came to its rescue.

While MBI then had a lot of money, the company did not always make things official, preferring to rely on trust rather than legal arrangements.

MBI is said to have given money to Ivory Properties, in return for which MBI would receive shares of Ivory Properties, to be held by certain individuals on its behalf.

The ownership of the project remains unclear, especially since MBI had not paid the full amount immediately. The situation worsened following the extradition of MBI mastermind Tedy Teow to China from Thailand in August this year.

A company search reveals Hemat Tuah’s top five shareholders to be Koh Teck Ong, Lim Ah Chay, Lio Chee Yeong, Tan Kim Hee and Teow Wooi Pin. Among the names listed, Teow Wooi Pin stands out, as he is said to be the elder brother of Tedy Teow. Wooi Pin has a 45% stake in Hemat Tuah. Tan Kim Hee, said to be Tedy Teow’s brother-in-law, owns 15%.

When The Edge visited the Bayan Mutiara site recently, workers were seen doing some site clearing. The project construction signboard lists Mutiara Metropolis Sdn Bhd as the developer.

A company search revealed Mutiara Metropolis to be the former Tropicana Ivory Sdn Bhd. Hemat Tuah, in turn, fully owns Mutiara Metropolis.

Datuk Seri Richard Jong East Full, whose company East Design Architect Sdn Bhd is listed as the town planner and architect for the reclamation site, could not be contacted for comment. PDC also had not responded to requests for comment as at press time.

“Initially, reclamation works were expected to start in 2014 but there have been various setbacks. Reclamation works started recently in 2Q and are being undertaken by China Communications Construction Company,” Nawawi Tie executive director Saleha Yusoff tells The Edge. The reclamation part of PWC will have mixed-use developments and, according to a local contact, may include residential, commercial, education institutions, a promenade, a jetty and a floating mosque.

As for the existing land, several projects have been completed, with more in the pipeline (see table).

“PDC Properties completed D’Residence back in 2008. The 175-acre D’Residence is adjacent to PWC’s existing land but is not part of PWC,” Raine & Horne International Zaki & Partners representative Datuk Linda Geh clarifies (see map). PDC Properties is the development arm of PDC.

Asia Green Group, which has since completed two projects — Quay West Residence and The Zen/Zen 6 — plans to launch The Pier, which comprises 934 units of serviced apartments and 64 units of two-storey commercial shopoffices. Apart from the land still to be reclaimed, Mutiara Biopolis Developments has an upcoming launch of 326 units of serviced apartments and 20 units of commercial shopoffices.

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