Real estate and construction company Jiankun International Bhd is expanding its property development activities in the northern states. This will be possible with the acquisition of Penang-based Oriental Link Properties (M) Sdn Bhd.
Jiankun is optimistic about Penang’s property market as the impact of COVID-19 has generally eased in the state. Especially since the start of the endemic phase in April 2022. Last year, 23,481 properties worth RM 13.38 billion were sold. This was an increase of 34% in volume and 28% in value. This was in comparison to the same period in 2021 (17,526 properties worth RM 10.45 billion)
The residential property segment accounted for 76.2% of transaction volume and 59.5% of transaction value in 2022. Market observers said Penang’s property market is expected to strengthen and moderate economic growth is expected in 2024.
The market is dominated by mid-range and affordable product categories, with some premium speciality designs attracting additional customers.
Proposed Completion Date For The Jiankun Expansion On Their Property Development.
The project has a building permit until January 31 2024 and an approved building plan until April 16. Oriental Link is also the owner and developer of a commercial project at 334 Jalan Paboi and Jalan Kampung Bukit, Bayan Lepas.
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Penang REDHA also expects improved property market performance with increased activity in some of its larger project developments including Eco Horizon and The Light City. Jiankun said Oriental Link, in a joint venture with landowner Panchor, is developing Sanctuary Garden, a 7.58-hectare residential community in Nibong Tebal, Penang.
Jiankun told the stock exchange recently that it is acquiring a 99.99% stake in Oriental Link from the directors of the private development company Lee Khoon Eng and Lee Phaik Choo, for RM9.5 million. Khoon Eng currently holds 99.2% of the shares and Phaik Choo 0.79%. And the remaining 0.01% belongs to another director, Ong Cheng Tata.
Jiankun said that through this acquisition, it can launch the Panchor Sanctuary Garden project in the third quarter of 2024. Barring any unforeseen circumstances, the proposed acquisition is expected to be completed by February 20th 2024 and it will be internally funded.
