Ikea anchors development of Batu Kawan
Free Malaysia Today, 10 January 2014
GEORGE TOWN: Popular Swedish furniture shop Ikea will open its doors in Batu Kawan, on the mainland, as part of a 245 acre mixed development plan was announced at a press conference, today by Penang Chief Minister Lim Guan Eng.
A joint venture company, Aspen-Ikano bought the land from state agency, Penang Development Corporation, for RM483.95 mill.
“The State Government and PDC’s strategic plans for Batu Kawan will receive an additional boost with the sale of 245 acres of land for the purpose of development of an integrated shopping mall, anchored by an Ikea store to be developed by Ikano Pte Ltd, and mixed development of offices and residences,” said Lim.
The investment by Aspen and Ikano in Batu Kawan will include the development of 30 acres for the Ikea store and the first phase of the Shopping Mall.
The second phase of the Shopping Mall will be developed over 45 acres and 170 acres is for mixed development purposes (Remaining Parcels).
“The total land cost for the project is RM 483,951,600 and payment is to be made within 60 months from the date of Agreement.
“A RM5 million non-refundable deposit has (is) also being paid to PDC,” he announced.
Lim added that the entire commercial and mixed development on the 245 acres of land is expected to be completed within 10 years from the date of agreement.
“However, the Ikea Store is to be developed and completed within the time frame mutually acceptable by both parties.
“The time frame that all parties are targeting at is about 5 years or sooner, depending on various surrounding, economic and demand factors,” he said.
The announcement, also posted on Lim’s official facebook page, received positive feedback from Penangites and many welcome the move as they will not have to travel all the way to the Klang Valley, Selangor to shop at the Swedish company that designs and sells ready-to-assemble furniture, appliances, and home accessories.
Ikano Pte Ltd, the Ikea franchisee in Malaysia, Singapore and Thailand, formed a joint venture with local company, Aspen Vision Land Sdn Bhd, to develop the integrated shopping mall.
