PETALING JAYA: Ewein Bhd’s joint venture with Consortium Zenith BUCG Sdn Bhd to develop a 3.67-acre freehold plot in Penang will be a mixed development which will provide high yields for purchasers.
Datuk Zarul Ahmad Zulkifli (pic), who is the chairman for both Ewein’s wholly-owned subsidiary, Ewein Land Sdn Bhd, and Consortium Zenith BUCG, said the planning for the project was still at a preliminary stage.
He pointed out that the joint venture would want to “do one thing at a time” and focus on establishing the Ewein Zenith brand first.
“Whatever we do, we will consider the buyers’ needs and will ensure that the properties we develop are able to provide high yields for them.
“Some of the value-adding features for the houses might include private lifts to apartments as well as medical facilities within the development to enhance response time,” he told StarBizWeek over the phone.
Ewein Land and Consortium Zenith BUCG’s 60:40 joint venture Ewein Zenith Sdn Bhd, had bought the land in Bandar Tanjong Pinang for RM133mil as part of Ewein’s intention to diversify its business. Ewein’s core business had been metal fabrication.
The land is the Penang state government’s payment to Consortium Zenith BUCG for its works for the multi-billion ringgit undersea tunnel project.
Zarul said: “As the consortium does not receive money upfront, we need to get the developer (in this case Ewein) to fund part of the construction works of the tunnel.”
Ewein is paying close to RM80mil for its 60% stake in this development project.
He explained that the consortium would be paid by the state government based on work completed and anticipated the milestone deliverable claims to be completed by March.
“However, we cannot wait for that as it will impact the developer’s cashflow. Hence, we are already planning while waiting for the land title,” he explained.
Once approvals from authorities are obtained, Zarul said he expected the project to be completed in two-and-a-half years.
Commenting on the property market, he said the economic growth in the northern region as well as the connectivity, which would in turn help to disperse traffic in the Pearl of Orient, would support the housing prices in Penang.
Asked if Ewein would get a share in the construction works of the third link, he said Ewein would be the partner for the property development but it would not be involved in the direct construction of the tunnel. The Star
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