PENANG Development Corporation (PDC) has not been involved in any land deal with the now-defunct MBI, says Chief Minister Chow Kon Yeow.
Chow, who also serves as the PDC chairman, was responding to reporters’ questions following a news report stating that police are believed to have summoned several corporate figures in Kuala Lumpur and Penang as part of investigations into MBI’s money trail.
“Police have not queried PDC regarding this matter. We are not in a position to comment as we do not have detailed information,” Chow told reporters when approached after launching the filming of the movie MAMU Georgetown at Komtar today. He was accompanied by two PDC representatives.
According to Chow, following a request for proposal (RFP) in 2011 to offer land at Bayan Mutiara on Penang Island, PDC sold 102.65 acres to Ivory Properties Group Bhd (IPGB) for RM1.07 billion for a mixed development project. Of this, 35 acres were earmarked for reclamation off the sea near the Penang Bridge. Approximately 60 per cent of the reclaimed land has been completed.
Ivory Properties subsequently appointed its subsidiary, Tropicana Ivory Sdn Bhd (TISB), to implement the project. Ivory Properties is also the developer of Penang Times Square, where MBI was the anchor tenant. The retail mall is now vacant.
By 2018, Chow said IPGB had fully settled the RM1.07 billion payment to PDC.
He added that on 1 November 2019, PDC signed a novation and supplemental agreement with Ivory Properties and Tropicana Ivory after the latter was fully acquired by Hemat Tuah Sdn Bhd.
“Any change in equity for industrial and commercial land must receive PDC’s consent, and the owners are required to pay a consent fee. This is stipulated in the agreement. We will continue to monitor compliance for 30 and even 50 years down the line. That is how PDC operates with buyers,” Chow explained.
PDC also imposes a time frame for purchasers to complete their proposed projects. If the deadline lapses without progress, PDC has the right to repurchase the land at the original cost, regardless of how much time has passed.
“We do not simply sell land; we want to see projects implemented to generate economic impact. If the timeline is not met, PDC has the right to buy back the land at the original price. For instance, if we sold the land for RM10 million, even after two or three years, we would repurchase it at the same cost. We want to avoid speculation,” Chow said.
Tropicana Ivory was later renamed Mutiara Metropolis Sdn Bhd after Hemat Tuah became the new landowner.
“PDC was not involved in the change from Tropicana Ivory to Mutiara Metropolis. Currently, Mutiara Metropolis has until 11 November 2028 to complete all components of the mixed development project at Bayan Mutiara. However, I understand they have requested an extension, which is still under deliberation,” Chow said.
Story by K.H. Ong
Pix & Video by Alissala Thian