The developer who won the bid for Bayan Mutiara land says it wants to clear the air that its success on bidding for the land was done via an open competitive tender.

In a statement issued today, Ivory Properties Group Berhad said it was pleased that it was successful in bidding for the 41.5ha piece of land in Bayan Mutiara at the price of RM240 per sq ft or RM1.07 billion.

NONE It is learnt that the unsuccessful bidder was Umno-linked SP Setia Berhad, whose sister company has won a bid to develop another plot of land in Bayan Baru for the controversial subterranean Penang International Convention and Exhibition Centre.

Bayan Mutiara is located at the south of Penang bridge, and is considered prime land, populated with a growing business community.

The statement said that Ivory had  participated in the open tender called by the Penang government, and which closed on Dec 31, 2010.

 

“Ivory had originally made a bid to purchase the land at the highest tender of RM240 per sq ft to be paid over eight years.

“In awarding the tender to Ivory as the highest bidder last year, the state government imposed an additional requirement of reducing the term of payment from the original eight years to five years.

“This was agreed to by Ivory and all the necessary announcements were lodged with Bursa Malaysia,” the company’s statement added.

 

Umno criticises land deal

The one-page statement was circulated to the media by Ivory’s assistant  corporate communications executive, Teoh Ee Ling.

Ivory was caught in a controversy surrounding the bidding for the land with Umno leaders questioning if the sale by the state-owned Penang Development Corporation (PDC) was concluded via a negotiated tender.

NONE Penang Umno liason committee chief Zainal Abidin Osman showed “ proof ” yesterday, alleging that Chief Minister Lim Guan Eng had not been entirely transparent on the matter.

Lim, who is also DAP secretary general, continues to insist that the land was sold via an open tender, and that the price of the land was competitive as the reserve price was RM200 psf, while the valuation price was merely RM65 psf.

Meanwhile, according to the statement, Ivory chairperson and group chief executive officer Low Eng Hock said the group has paid the deposit of RM22.1 million to the PDC.

The money derived from this sale will be channelled to the contruction of about 12,000 affordable homes, with prices ranging between RM72,000 and RM220,000, in Batu Kawan.

“The remainder will be paid according to the scheduled progress payment after Ivory’s shareholders’ approval at an extraordinary general meeting, which is scheduled on Mar 5, 2012.”