Penang to auction six-acre freehold plot next month to fund Ayer Itam bypass completion
Penang will auction a 6-acre freehold plot in Tanjung Pinang on Oct 7 to raise funds for the Ayer Itam to Tun Dr Lim Chong Eu Highway bypass, which is 92.46% physically complete but only 81.69% financed. The reserve price is RM313.632 million, or RM1,200 psf, with proceeds shared between the state a
GEORGE TOWN — Penang will auction a six-acre freehold plot next month to raise funds to complete the Ayer Itam to Tun Dr Lim Chong Eu Highway bypass project, the state government announced on Monday (Sept 7).
The project’s construction is nearly complete at 92.46 per cent as of Aug 31, while financial progress stood at only 81.69 per cent, according to a statement from Zairil Khir Johari, the state’s executive councillor for infrastructure, transport and digital. The contractor, Consortium Zenith Construction Sdn Bhd, sought the state government’s assistance to monetise the land to generate cash flow and ensure the project’s completion by April 2027, he said.
The toll-free dual-carriageway stretching six kilometres is intended to provide an alternative route and ease traffic congestion in George Town. The project, which began construction in February 2021, comprises elevated viaducts, ground-level roads and other structured sections. However, it has faced delays linked to financing and site logistics. The bypass is funded through a land-swap method, where land plots are transferred based on completed work claims rather than through cash payments to the contractor.
Consortium Zenith has so far claimed completed works worth RM696 million. About 12 acres of land worth RM427.657 million has been transferred to the company, while the remaining value of land claimed but yet to be transferred is RM225.768 million.
The prime freehold plot, identified as P.T. 858 (Plot 7A), Section 2, Bandar Tanjung Pinang in the northeast district, will be offered through a public auction on Oct 7. Located next to Gurney Bay and Andaman Island, the plot has a reserve price of RM313.632 million, equivalent to RM1,200 per square foot. “Profits from the sale will be shared between the state government and CZC,” Zairil said.
Prospective bidders are required to submit a bank draft deposit equivalent to 1 per cent of the reserve price, or about RM3 million, payable to the District Land Administrator before 11am on the auction day. One Asia Property Consultants (PG) Sdn Bhd is the appointed auction agent. The sale could generate more than RM300 million, people familiar with the matter told The Edge Malaysia Weekly.
