Penang Turf Club Dissolved, Major Development Project Imminent?

The Penang Turf Club (PTC) has decided to sell its historic land in Batu Gantong following an Extraordinary General Meeting (EGM) held on June 10. The motion to dissolve the club received overwhelming support, with 146 members voting in favor and only three against. If successful in finding buyers, each shareholder could potentially receive at least RM1 million. With the current market value of commercial land in George Town at approximately RM700 per square foot, the site is estimated to be worth around RM6 billion once converted to commercial status. However, converting the land from its current recreational use to a mixed-development property is projected to cost about RM1 billion.

Established in 1864, the PTC is the oldest horse-racing club in Malaysia and currently has a membership of 600. The club’s history began with a land grant on Macalister Road, where its first wooden and attap buildings were constructed in 1869. In 1939, the PTC moved to its present prime location next to Taman Jesselton Heights.

The club had proposed a project named Penang Global City Centre in 2007 on the current PTC land, which included two iconic sixty-story towers housing luxury residential units and five-star hotels, the Penang Performing Arts Center (PenPAC), a high-end retail and entertainment complex, an observatory, a world-class convention center, and a vast public arena. However, the project was paused after Barisan Nasional lost its regime in Penang.

Currently, PTC lands are up for sale. The available properties include a racecourse, a golf course, a Penang retirement resort, some hill land, 26 vacant bungalow lots, 22 bungalows, a Penang Hill bungalow, and a piece of land at Jesselton Road. They have even invited potential buyers from Singapore, Mainland China, Hong Kong, and Indonesia to bid. According to media reports, three Malaysian listed companies are currently interested in bidding for the PTC land, which covers 47.7 hectares (118 acres) and is valued at about RM3 billion.

The listed companies that might be interested include:

1. $GOB / 1147 (GLOBAL ORIENTAL BERHAD): Launched the Penang Global City Centre project in 2007. After the Barisan Nasional regime lost power and the project was called off, GOB sold its 25% stake in Abad Naluri (the company engaged in the Penang Global City Centre) to Kiara Ikhtisas.
2. $BJLAND / 4219 (BERJAYA LAND BERHAD): In 2014, Berjaya Land bought 57 acres of prime freehold land from the Penang Turf Club for RM459 million for residential property projects with a gross development value (GDV) of about RM1.52 billion. This land is near the club. Additionally, Tan Sri Vincent Tan was involved in bidding for development rights for the PTC but lost to GOB.
3. $SUNWAY / 5211 (SUNWAY BERHAD): Sunway may be interested in this land as it has a strong track record in mixed development.