JLL: A healthy pipeline of new office supply in the coming quarters

 By NST property - Published on May 31, 2022 

Several major projects are expected to be completed in Greater Kuala Lumpur in the latter quarters of the year. NSTP/ASWADI ALIAS.

Office supply in Greater Kuala Lumpur remained stagnant in the first quarter of this year, with no new completions, according to JLL Property Services (M) Sdn Bhd.

However, several major projects are expected to be completed in the latter quarters of the year, demonstrating a strong supply pipeline of grade A buildings, said the firm's country head, YY Lau.

According to Lau, net absorption is positive as market activity begins to pick up as the city transitions into endemicity, primarily driven by tech-related sectors that continue to grow.

"We also see more enquiries from various sectors namely financial services including the fintech industry, as Malaysia had recently granted digital banking licenses to several companies. With that being said, given the amount of new supply currently in the market, we expect trends of flight-to-quality to remain apparent," she said in the firm's recently published data.

JLL Property Services (M) Sdn Bhd country head, YY Lau.

Activity in the logistics and industrial sectors increased by 3.5 per cent year on year. Nonetheless, the sector's growth rate slowed, with only US$8.3 billion in capital deployed in the first quarter.

Despite widespread investor interest, the lack of large portfolio deals and limited deal pipelines contributed to slower investment growth in the sector. The sale of the DLJ Greater Shanghai Portfolio (US$717 million) in China was notable.

"We continue to see the growth in the data centre sector due to Malaysia's strategic geographical location as well as the revised data centre moratorium policy imposed by the Government of Singapore, benefitting the country as well as Indonesia," Lau said.

According to her, JLL in Malaysia has received numerous data centre inquiries and facilitated a few land transactions as investors and operators rush to enter the market.

Microsoft, Amazon, and Google have received conditional approval to build and manage large-scale data centres and cloud services across the country, elevating Malaysia's prominence as a regional data hub.

Meanwhile, hotel transactions remained resilient, reaching US$3.1 billion as more hotels changed hands with investors looking to buy low and convert underperforming hotels into living products.

JLL expects the sector to rebound further in 2022, forecasting US$10.7 billion in total transactions, up 15 per cent from 2021

Pamela Ambler, head of Investor intelligence and strategy, Asia Pacific, JLL, said that investors are sitting on over US$50 billion in dry powder and have demonstrated in the first quarter their confidence in spreading capital across geography and sector.

"In the coming months, momentum will shift towards logistics and industrial as supply comes to market, and funds will increasingly focus on income resilient sectors," she said.

Growth in the Asia Pacific

According to data and analysis published in the JLL Capital Tracker Q1 2022, investment growth in the Asia Pacific real estate sector continued in the first quarter of 2022, with volumes up 20 per cent yearly.

Stuart Crow, JLL's chief executive officer, capital markets, Asia Pacific, said US$40.8 billion in the capital was deployed into the region through direct real estate investment during the quarter.

Investment volumes increased in Singapore, South Korea, and Australia.

Sector-wise, Crow said the retail and office sectors performed strongly whilst logistics and industrial reported a moderated growth rise of 3.5 per cent year-on-year.

"Investors continue to diversify when deploying capital across Asia Pacific, represented by a swing of investments into retail assets, continued support for the office market, and high growth in Singapore, Korea and Australia allocations. We are optimistic that the region's real estate sector will withstand rising interest rates and growing uncertainty," he said.

Crow said that JLL continues to face intense competition for assets and maintains its forecast of over US$200 billion in direct investment into the Asia Pacific for 2022.

Singapore commercial real estate experienced the highest year-on-year growth in the region, with investments totalling US$5.7 billion at the end of the first quarter, fueled by large transactions in the office and retail sectors.

South Korea maintained its strong performance in the first quarter, growing 89 per cent year on year to US$8.2 billion on the back of diverse investments in the office, retail, logistics, and industrial sectors.

Australia had the third-highest annual investment growth (up 49 per cent), with investors deploying US$4.7 billion into the market, with a focus on office.

Despite a 26 per cent year-on-year decline, Japan remained the region's largest investment market (US$8.5 billion).

Volumes in China remained flat in the first quarter, totalling US$8.3 billion.

According to published data, the Asia Pacific retail sector grew the most in the first quarter of 2022, with investments increasing by 39 per cent year on year.

During the quarter, over US$8 billion in the capital was deployed into retail assets as foot traffic returned following the relaxation of pandemic management policies in most markets.

Investors demonstrated a renewed confidence in retail space through transactions such as Tanglin Shopping Centre (US$642 million) in Singapore, Seongsoo E-mart (US$552 million) in Korea, and Casuarina Square (US$288 million) in Australia, driven by attractive yields and portfolio diversification.

The office sector remained the most popular in the Asia Pacific in terms of total volume, increasing by nine per cent year on year to end the first quarter with US$17.3 billion in direct investment.

Investors remained bullish on the region's office sector, buoyed by improved net absorption and rental growth, with notable deals including AlphaDom City Alpharium Tower (US$846 million) in Korea, Cross Street Exchange (US$600 million) in Singapore, and Darling Quarter (US$453 million for a 50 per cent stake) in Australia reflecting sentiment.

The Malaysian-owned Battersea Power Station will host The Queen's Platinum Jubilee party next week

 By Sharen Kaur - Published in NST Property on May 26, 2022 

The Battersea Power Station in central London is owned by a Malaysian consortium. Courtesy image

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The Battersea Power Station in central London, owned by a Malaysian consortium, will host a special Britannia-themed party next week to commemorate The Queen's Platinum Jubilee and Her Majesty's 70-year reign.

The Queen first visited Battersea Power Station in 1946, when the former coal-fired power station was still in operation, for a behind-the-scenes tour of Turbine Hall A and Control Room A.

While in operation, the landmark is also known for supplying electricity to many notable London locations, including Buckingham Palace.

The Queen, then Princess Elizabeth, visited Battersea Power Station in April 1946 with her grandmother Queen Mary (left), for a special tour inside the Power Station and Control Room A. Exact date was unknown. Photo credit: Simon Webster/Alamy Images (Courtesy of Sime Darby Property)

The Battersea Power Station is being redeveloped by the Malaysian consortium comprising Sime Darby Property Bhd (40 per cent), S P Setia Bhd (40 per cent), and The Employees Provident Fund (20 per cent).

The 42-acre development includes 3.5 million square feet of mixed commercial space and 4,239 new homes.

The £9 billion regeneration project will create a vibrant, mixed-use destination with homes, shops, restaurants, offices, culture and leisure venues, and 19 acres of public space, served by an extension to the London Underground Northern Line.

According to Simon Murphy, chief executive officer of Battersea Power Station Development Co, the Queen's Platinum Jubilee will be a joyous occasion to commemorate.

"We look forward to commemorating this at Battersea Power Station with a very British celebration and a series of family-friendly activities for all to enjoy. We are also incredibly proud to have been chosen as the first central London destination visited by the Birmingham 2022 Queen's Baton Relay on its return into the UK on June 2."

Murphy described 2022 as an extremely exciting year for Battersea Power Station, as the iconic Grade II* listed building will open to the public in September.

He said that the Platinum Jubilee celebrations provide the ideal opportunity to welcome members of the local community and those from further afield to discover the vibrant new riverside neighbourhood.

Battersea Power Station will be home to 254 residential apartments, over 100 retail shops, restaurants, cafes, and unique event spaces such as the Chimney Lift Experience, from September of this year.

The opening will coincide with the launch of this exciting riverside neighborhood's new high street, Electric Boulevard, which will feature a mix of office space, shops, bars, restaurants, a 164-room hotel, and a community centre.

Circus West Village, the first phase of Battersea Power Station regeneration, is already home to over 1,700 residents and more than 20 bars, restaurants, cafés, and fitness and leisure facilities.

Meanwhile, next week's family-friendly event at Battersea Power Station will include live music and dance performances, screenings of celebrations worldwide, and food and drink pop-ups from some of London's best street food trucks, bars, and restaurants.

The Birmingham 2022 Queen's Baton Relay will also arrive at Battersea Power Station on June 2, making it the first Central London location to receive the Baton after its international journey across the Commonwealth.

Battersea Power Station Community Choir will perform a special musical number to commemorate the final of the four Batonbearers placing the Baton on the podium on stage.

The iconic chimneys of the Power Station will also be lit purple and gold, the official Platinum Jubilee colours.

Tropicana's unbilled sales total RM1.5bil despite a slow start to the year

 By Sharen Kaur - Published in NST Property on May 26, 2022

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Tropicana Corp Bhd says that its unbilled sales are currently at RM1.5 billion, despite a slower performance in the first quarter of this year (Q1 2022).

"We performed well in 2021 but noticed a slower pace in Q1 2022. Nonetheless, we continue to strive forward and rolled out various campaigns," said the company's group managing director, Dion Tan Yong Chien.

The developer launched the "Multi-Million Mania Campaign," which includes prizes and vouchers worth millions of ringgit for home seekers and shoppers at its mall, as well as a grand prize of an Edelweiss SOFO unit at Tropicana Gardens.

To add more push factor, it launched the "Tropicana Power Up Campaign," which runs until June 30, 2022, and includes down payment assistance, free stamp duties on loan agreements and memorandums of transfer, double referral rewards, and bonuses on sale and purchase agreement signings.

Tropicana reported revenue of RM223.3 million in Q1 2022 (Q1 2021: RM240.5 million), an RM17.2 million or 7.2 per cent decrease from the previous year's corresponding quarter.

It recorded a pre-tax profit of RM35.5 million, which was RM54.8 million less than the previous year's corresponding quarter.

Tropicana said in a stock exchange filing yesterday that despite making good progress in its property sales and development segment, the company's poor performance was attributed to its hotel business, which had yet to fully recover.

The company intends to launch up to RM2.9 billion in properties in 2022 to accelerate its growth, according to Tan.

"We believe these campaigns will be timely and appeal to the property seekers following the opening of international borders. We will continue to innovate our projects, as we adapt to the market sentiment while staying true to our Tropicana development DNA," he said in a statement.

Tan said that the aggressive sales and partnership campaign, as well as the gradual economic recovery, will aid the company's growth.

Although the industry remains challenging in the short term, he believes there will be demand for properties in prime locations in Tropicana's established, matured, and developing townships, with attractive pricing and innovative ownership packages and offerings.

Tropicana will continue to be market-driven in its product offerings while unlocking the value of its land bank in strategic locations such as Klang Valley, Genting Highlands, and the northern and southern regions, he said.

The company's land bank covers 2,452 acres and has a total potential gross development value of RM152.2 billion. This places it in a good position to unlock the value of its strategic land bank and deliver sustainable performance in the coming years.

Kedah-based developer EUPE Corp buys Kampung Attap land to expand its property development portfolio

 By Sharen Kaur - Published in NST Property on May 24, 2022 

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Kedah-based EUPE Corp Bhd plans to develop a high-rise residential project on 1.95 hectares of leasehold land along Jalan Damansara and Jalan Belfield in Kampung Attap, Kuala Lumpur.

The company has entered into a conditional agreement to purchase the land from Cahaya Tinggi Sdn Bhd for RM125 million through its indirect wholly-owned subsidiary, EUPE Belfield Sdn Bhd.

The lease on the land expires on December 3, 2118.

In a stock exchange filing yesterday, EUPE stated that the proposed acquisition is consistent with the company's business expansion goal and growth strategy of acquiring new suitable land to add to its landbank.

EUPE said that it is purchasing the land to expand its property development portfolio and generate an additional stream of income for the company in the future.

With the upcoming completion of catalytic developments such as Bandar Malaysia and Merdeka 118, as well as prominent landmarks such as Stadium Merdeka, Royal Museum, KL Sentral, and Petaling Street, the company said that the Belfield land will be a strategic location for a residential property development targeted to city dwellers, owing to its strategic location, proximity to amenities, and tranquil environment.

"The board is deliberating on the development plan for the Belfield land. The board intends to undertake high-rise residential development on the Belfield Land after the completion of the proposed acquisition," it said.

However, EUPE said that it is unable to confirm the details of the said development at this time, including, among other things, the timeframe for completion, development costs, and eventual funding requirements because the plan is still in the preliminary stage.

Nonetheless, the board said that the proposed acquisition represented an opportunity for the company to own the entire interests of land in a strategic location with strong growth potential to increase the gross development value of its development projects, which is expected to provide greater sustainability for the group's future earnings.

"Notwithstanding the above, the board takes cognisance that the effects of Covid-19 are still prevalent in the recovery of the Malaysian economy. There is no assurance that any resurgence of Covid-19 cases or decline in economic conditions may adversely impact EUPE's existing business operations and financial position, as well as the future development of the Belfield land.

"Nonetheless, the board anticipates the gradual recovery of the property development industry given the government incentives to boost the industry by providing tax exemptions as well as the reopening of international borders, and a further improvement in labour market conditions," it said.

EUPE said that it remains optimistic about the prospects of the Belfield land and its potential development because it is located in a prominent location with ongoing mixed development, namely Sunway Belfield nearby, future developments, and easy access to surrounding facilities.

The proposed acquisition is expected to be completed by the second half of 2022, assuming no unforeseen circumstances arise and all necessary approvals are obtained.

Daat Island in Sabah will be auctioned off this week starting at RM121.5mil

 By  NST Property - Published on May 23, 2022 

Daat Island is roughly 237.55 hectares in size. The notice for the public auction of the island was posted by the liquidator company in charge of the sale.

Daat Island, which is roughly 237.55 hectares in size and located halfway between Menumbok and Labuan in Sabah, will be auctioned off this week.

This is following the liquidation of the island's owner Potensi Bernas Sdn Bhd.

The island will be auctioned off in public on May 27 at 11 a.m. on the first floor of Bornion Centre, off Jalan Kolam in Luyang.

The reserve price is RM121.5 million (RM4.80 per square ft), and the island will be sold "as is, where is."

Daat Island was originally scheduled for auction on June 30, 2021, but was rescheduled for September 10, 2021.

The reserve price was RM135 million at the time, according to a notice in a local newspaper last year.

Daat Island has a 999-year lease (expiring on 31 December 2853).

The island's title deed was first issued to John Gavaron Treacher and Clarence Cooper in 1856 by George Warren Edwardes, the then Governor of Labuan (1856-1861), on behalf of Queen Victoria.

A development plan for an RM3 billion integrated petroleum complex for gas storage, fabrication farm, container yard, refinery, commercial, housing, and a hotel was approved in 2011, off Daat Island.

The Federal Territories Ministry, through its agency, Labuan Corp, was looking into turning Daat Island into an oil and gas hub in order to boost the island's economy.

The Daat Island project, a collaboration between Sabah-based RG Gas and Chemical and China-owned Zhuhai Winbase International Chemical Tank Terminal Co Ltd, was expected to support 3,000 construction jobs.

The plan was scrapped, however, because Daat Island is said to be surrounded by shallow and muddy water, rendering it unsuitable for the oil and gas industry.

In 2019, it was reported that a neighbouring country's sovereign wealth fund had presented Labuan Corp with an RM12 billion proposal, a prospect that will single-handedly boost Labuan's economy.

Back then, a senior official of Labuan Corp told the New Straits Times that the proposal included plans to build a new multi-cargo port and a bridge connecting Labuan and Sabah, both of which would cost between RM4 billion and RM5 billion, as well as to develop Daat Island for tourism.

He said that the RM12 billion is a long-term investment and the sovereign fund is a serious investor.

Since the announcement, there have been no further developments.

SharkNinja will have 25,000 sq ft of office space at Battersea Power Station

 By Sharen Kaur - Published in NST Property on May 20, 2022 

SharkNinja will be opening a flagship office at Battersea Power Station in September. Photo credit: Jason Hawkes (courtesy of Sime Darby Property)

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SharkNinja, a global maker of vacuums and home appliances, will take 25,000 square feet of office space at Switch House Hall in central London's Grade II listed Power Station.

It will join Apple's 500,000 square feet of office space and IWG's The Engine Room, a customised 40,000 square foot co-working area.

The new office expands SharkNinja's existing base in the United Kingdom and is an important component of the company's ongoing growth, with the workforce consisting solely of product teams across engineering and design.

SharkNinja will begin preparing the facility soon, with employees scheduled to move in by September, when the Power Station formally opens to the public. The office is expected to seat 190 people, with 135 initially.

SharkNinja's new London headquarters will have much larger workshop facilities as well as sophisticated testing equipment for all categories. Engineering laboratories will account for almost half of the site, with purpose-built facilities designed to meet the company's existing demands and assist its ambitious development aspirations.

The London team will drive forward the global development of products across all categories by utilising cutting-edge development salons, kitchens, and other facilities.

Lauren McMullan, SharkNinja's vice-president and general manager of London, said that the success of new product introductions is driving the company's continuous expansion.

"We are continuing to invest in our workforce to spur further international expansion, and our latest acquisition of office space in the capital is reflective of our growth in recent years," he said.

McMullan said the state-of-the-art facilities in the new Battersea Power Station site will allow the company's staff to continue driving innovation for SharkNinja.

"We are excited to welcome everyone to the new office space which is focused on encouraging collaboration and productivity," he said.

Simon Murphy, chief executive officer of Battersea Power Station Development Co (BPSDC), said the company is thrilled to welcome SharkNinja to Battersea Power Station, another global brand and innovator which will add to the sense of dynamism, creativity, and invention in this new riverside neighbourhood.

"2022 is a seminal year for the project with the Power Station opening to the public for the first time in history in September. With a further 200,000 sq ft of office space launching later this year, and our very own tube station opening last September, Battersea Power Station is fast becoming a highly sought after new office location for London."

Residents are currently living inside the Grade II listed Battersea Power Station, and new stores, including Ralph Lauren, Ray-Ban, Lacoste, Mango, Le Labo, The Kooples, and Calvin Klein, have announced that they will open their doors in September.

The Power Station will have over 100 stores, bars, and restaurants, as well as a luxury boutique cinema and unique recreational spaces such as the chimney lift experience.

Visitors will be transported 109m up into one of the Power Station's distinctive chimneys via a glass elevator before emerging at the top to experience unparalleled 360-degree views of the capital's cityscape.

Residents and tourists to Battersea Power Station will be able to enjoy a variety of new green and open public areas, including the six-acre Power Station Park, which sits directly in front of the building on the river's banks.

Electric Boulevard, a complex of buildings combining houses, offices, and a new high street to the south of the iconic Power Station, which will also open later this year, is formed by Foster + Partners' Battersea Roof Gardens and Gehry's Prospect Place.

RM300mil profit for PKNS this year?

By Sharen Kaur - Published in NST Property on May 23, 2022 

The Selangor State Development Corp is expected to post more than RM300 million in profits this year, according to its chairman Datuk Seri Amirudin Shari.

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The Selangor State Development Corporation (PKNS) is expected to earn more than RM300 million this year, according to chairman Datuk Seri Amirudin Shari.

Amirudin said that the amount was projected after accounting for the state-owned company's restructuring of investment and corporate elements, as well as positive developments in the construction sector.

According to him, PKNS lost close to RM500 million in 2020 before turning a profit of up to RM40 million in 2021.

"The profits indicate that the short- and long-term plans have progressed well. This year, we project that PKNS can achieve better results. If in 2020 PKNS posted losses of close to RM500 million, in 2021, we recorded a profit of RM30 million to RM40 million. This year, it is expected that profit will be in the hundreds of millions, or over RM200 million to RM300 million," he said during the PKNS open house last week.

Amirudin, who is also Selangor Menteri Besar, said that the Covid-19 pandemic, which has been ravaging the country for the past two years, has caused a portion of PKNS's account position to record a negative value in 2020 due to impairment.

He said that during this time, PKNS addressed the issue of impairment on investments made through restructuring, and as a result, it immediately recorded profits in 2021.

"This shows that the strength of PKNS' business is still there," he said.

Amirudin said that the organisation (established on August 1, 1964) must rise again by reorganising and focusing on current changes.

"PKNS needs to step up and be confident in itself at its highest and lowest points alongside competitors who are as capable as they are. This is the challenge, to remove yourself from the comfort zone and ensure that PKNS's achievements are limited to the housing and construction sector and can also offer what is needed in the market," he added.

During the 2008/2009 global economic crisis, PKNS's operating profit increased significantly compared to the previous fiscal year, thanks to aggressive marketing and rebranding.

Despite a challenging year for most property developers due to the global economic crisis and rising material prices, PKNS made a profit of RM165 million in 2009, which increased significantly to RM206 million in 2010.

In 2011, PKNS recorded its highest profit before tax of RM420 million.

The luxury Datum series, with a gross development value of RM20 billion, is one of PKNS' crowning jewels.

Ikano Centres has unveiled 'Klippa', a mixed-use hub in Batu Kawan

 By Sharen Kaur - Published in NST Property on May 20, 2022

An artist’s impression of Klippa in Batu Kawan, Penang

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The new name for Ikano Centres' retail destination and mixed-use hub in Batu Kawan, Penang is 'Klippa,' which means rock or friend in Swedish.

Klippa is the perfect wordplay to describe Batu Kawan, according to Adrian Mirea, Ikano Centres' shopping centre and mixed-use director.

"With Klippa, we aim to be the rock in this growing community and to transform Batu Kawan into a successful commercial and leisure hub in Penang," he said after the unveiling yesterday.

Ikano Centres is a subsidiary of Ikano Retail, which owns IKEA stores in five countries with shopping malls anchored by IKEA.

The development in Batu Kawan is Ikano Centres' first northern region presence.

Klippa will offer a unique retail experience with an integrated shopping mall covering 1.6 million sq ft of gross leasable area (GLA) and housing over 300 brands, conveniently placed with direct access to the Second Penang Bridge and seamless link to IKEA.

Ikano Centres is also looking into further commercial and residential opportunities to add to its meeting space, built in stages to accommodate Batu Kawan's growing community of students, families, and professionals at the nearby Batu Kawan Industrial Park (BKIP).

Klippa also plans to drive the local arts and culture scene in line with the Penang State Government's objective of bringing arts and culture to Batu Kawan and fulfilling Penang's association with street art.

The first phase of Klippa debuted in December 2019 with IKEA Batu Kawan, featuring 20 brands and 80,000 square feet of GLA,

In November 2021, a one-of-a-kind F&B drive-thru was introduced. The initial tenant was a McDonald's drive-thru, expanding the community's food options.

Mirea said that the company is bringing the Ikano Centres retail experience to communities in the northern region in order to replicate the success of its gathering places in central and southern Malaysia.

The goal of this meeting place development is to provide visitors to the region with a comprehensive customer experience that is enhanced by convenience for all of their shopping, dining, entertainment, and leisure needs.

Arnoud Bakker, commercial director at Ikano Centres said it is collaborating with Aspen Vision City to promote Klippa as a destination where people can live, work, and create memories together.

Arnoud Bakker, commercial director of Ikano Centres, said he is looking forward to welcoming more partners to help establish a retail destination that both Malaysians and tourists would want to visit.

Klippa's first phase has had a 98 per cent lease rate since its debut, with tenants including IKEA, Harvey Norman, and McDonald's.

Bakker said Ikano Centres is collaborating with Aspen Vision City (AVC) and its BKIP partners to promote Klippa as a destination where people can live, work, and create memories together.

Covering 245 acres of freehold land in Bandar Cassia, AVC is a partnership between Aspen Group and Ikano Pte Ltd, owner of popular furniture franchise IKEA. The township offers a mix of condominiums, shop offices, serviced suites, hotels, office towers, financial hub, medical centre, and international schools.

Gurney Wharf in Penang will cost at least RM200mil to develop

 By NST Property - Published on May 18, 2022 

Gurney Wharf is expected to be completed in 2025. Image via Facebook

The cost of developing the Gurney Wharf waterfront project has increased by 12 per cent to RM200 million.

According to Penang Chief Minister Chow Kon Yeow, the project's cost has been increased by RM24 million to RM200 million and it could rise further in the future due to escalating costs.

The Gurney Wharf project, which will be built on reclaimed land near the state's most famous tourist destination, Gurney Drive, was first mooted six years ago.

Spanning nearly 5km eastward from the foreshore of Gurney Drive, a total of 52 hectares (ha) of land were reclaimed in 2019, with 20ha set aside for Gurney Wharf.

Tanjung Pinang Development Sdn Bhd, a subsidiary of Eastern & Oriental Bhd, reclaimed the foreshore as part of a deal to reclaim Seri Tanjung Pinang (STP) Phase 2 further up north.

Gurney Wharf broke ground last week. Penang Chief Minister Inc owns the project, which is expected to be completed in early 2025.

According to Bernama, Chow said it would become the state's newest attraction, adding economic value and spillover.

"The Gurney Wharf development initiative began in 2016 with engagement sessions with all stakeholders including Penang residents to obtain views, input, and feedback in terms of needs as well as the recreational component required by the community in the state.

"The project will be a promenade with a beautiful sea view and a recreational park, hawker centre, parking, and other facilities for the entire family to spend quality time and for a better quality of life for the people on the whole," he said after the Gurney Wharf ground-breaking ceremony.

Johor-based Teto Engineering Sdn Bhd has been selected as the project's principal contractor.

Work on the landscaping, skate park and playground, maritime engineering, and steel roofing would be done by subcontractors.

"Those involved in the project will protect the environment and marine areas. A traffic flow plan, including pedestrian walkways, is being studied as we expect the wharf to receive high traffic throughout the day. We hope the project, when completed, would be the state's new attraction," Chow said.

Chow said next year would see the completion of a green park, a playground, a skate park, and a viewing deck.

A hawker centre, a multi-story parking garage, a water taxi jetty, and a man-made beach would be built in the next two years.

The Gurney Wharf project supports Penang 2030's vision of a 'Family-Focused Green and Smart that Inspires the Nation.'

State Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh in his speech, stated that if not for the Covid-19 outbreak, the project would have been completed by now.

"It is going to happen," he said.