This article first appeared in The Edge Malaysia Weekly on March 17, 2025 - March 23, 2025

PENANG Turf Club (PTC) — the largest piece of prime real estate on the island — is to be broken into several parcels and sold separately to make it more feasible, as well as to attract a bigger pool of potential purchasers, sources tell The Edge.

A previous bid to sell PTC via a call for tender, which closed on Nov 29 last year, did not result in any successful bidders. One of the conditions then was that interested parties would have to bid for not only the 118.14-acre turf club but also all seven other components owned by the club, which add up to a combined total of about 202 acres — almost three times the size of Tun Razak Exchange in Kuala Lumpur.

“The PTC site stands as one of Penang’s most significant redevelopment opportunities with exceptional potential for a high-end integrated development, seamlessly blending luxury residences, premium commercial spaces, world-class hospitality and specialised institutions such as healthcare or education. In a market where large contiguous land is scarce, the PTC site, if successfully rezoned and with conversion costs managed, could command a significant premium.

“One of the biggest hurdles remains pricing. The previous tender’s valuation translates into an average land cost of RM340 to RM350 per sq ft (psf), a steep figure given the prevailing market conditions. The high price limits the buyer pool, further reducing competition. Even major players would find it challenging to absorb such a large capital commitment in a single transaction,” real estate agency Zerin Properties’ founder and group CEO Previn Singhe tells The Edge.

The Edge is given to understand that a UK-based fund — said to be one of the earlier bidders last year — is still in negotiations with the club. When asked for confirmation, PTC declined to comment.

“Given the market’s post-pandemic caution and rising construction expenses, developers are now more selective, favouring projects with faster turnaround and lower financial risk. Large-scale, long-term projects, especially those requiring significant infrastructure and regulatory approvals, face heightened scrutiny. In response to these challenges, the decision to sell the land in smaller parcels is a pragmatic move that could attract more buyers. However, it also presents trade-offs. Fragmenting ownership may dilute the value of a unified master plan and complicate infrastructure coordination.

“The success of this strategy will depend on how well the parcels are structured to maintain development feasibility while making acquisitions more accessible to a wider range of investors,” Previn adds.

The Edge, in July 2024, reported that in the then tender exercise, bidders had to make an offer for all eight components individually, but the vendor retained the right to sell any of the smaller components before the bid ended on Nov 29.

The successful bidder was also required to have a good financial standing and be able to show proof of funds and to acquire whatever remained unsold after the bid ended. The initial plan was to hand over the club to the successful bidder by 2025 and, if the deal had gone through, it would have enriched over 500 PTC members.

The combined 202 acres of the turf club, which include its seven components, were valued at between RM2.6 billion and RM3 billion.

It was reported that among those interested in the PTC land in the previous tender were Tan Sri Desmond Lim Siew Choon, chairman of WCT Holdings Bhd (KL:WCT). Lim is also chairman and executive director of Pavilion REIT Management Sdn Bhd and conglomerate Sunway Bhd (KL:SUNWAY). Sources say that in that exercise, eight bidders purchased the tender documents at RM10,000 each.

Aside from the PTC land, the other components comprise a 73.32-acre hillside parcel (currently a durian plantation); five vacant and developed pieces of land adjacent to the PTC, at the corner of Jalan Brook and Jalan Jesselton, which include 26 detached plots and 17 already built Brook Garden bungalows; the 126,928 sq ft Penang Retirement Resort; and five (now four) 2-storey bungalows and a bungalow on Penang Hill. The listed components remain unchanged except for one 2-storey bungalow that has since been sold. 

Previn says the success of the PTC land development hinges on a well-thought-out master plan that strikes a balance between market viability, sustainability and community needs. “Penang’s luxury property market has seen selective demand, particularly for waterfront and heritage-adjacent locations. The high-end market in Tanjung Bungah, Gurney Drive and Batu Ferringhi remains resilient, driven by local ultra-high-net-worth individuals, Malaysia My Second Home investors and the Singaporean and Malaysian diaspora. Prime freehold plots on Gurney Drive are transacted between RM1,000 and RM1,500 psf while reclaimed land in The Light City, which comes with added reclamation complexities, ranges from RM500 to RM700 psf.

“The PTC site offers a rare opportunity to create a landmark development in Penang. With global trends increasingly favouring green building practices and community-focused designs, these elements are no longer optional but essential for long-term success. Developers who approach this project with flexibility, innovation and a commitment to quality will be best positioned to unlock its true value. I would love to see how this unfolds and if pricing expectations are adjusted to match market realities.”

There have been attempts to sell the land, located in Bukit Gantong and just beside the exclusive Taman Jesselton Heights, over the years. In 2007, Patrick Lim’s Abad Naluri Sdn Bhd proposed the RM25 billion Penang Global City Centre, which included plans for five-star hotels, shopping centres, a park, a miniphilharmonic centre, as well as commercial and residential properties — to be completed over about 18 years. The ambitious plans fell through a year later due to strong public protests, including from some influential residents in the area.

Then in 2010, the PTC called for bids for a 57.3-acre land along Persiaran Jesselton Selatan, which was won by Berjaya Land Bhd (KL:BJLAND) for RM459 million or RM184 psf.

According to PTC’s website, the club was founded in 1864 and is the first and oldest existing horse racing club in Malaysia with world-class racing sport facilities.

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