Recap of the Penang Global City Center Project Collapse

The Penang Global City Centre (PGCC) project, launched in 2007, was envisioned as a transformative development for Penang but ultimately failed due to its impractical scale.

Abad Naluri Sdn Bhd, an associate company of $GOB / 1147 (GLOBAL ORIENTAL BERHAD) (formerly Equine Capital Bhd), was set to undertake the RM25 billion project. Located on Penang Turf Club (PTC) land in Batu Gantong, the PGCC was conditional on Abad Naluri constructing a new turf club in Batu Kawan as a replacement. Below is a timeline of key events:

2002:
- Abad Naluri Sdn Bhd submits its tender to build a new race course for the Penang Turf Club (PTC) at a 250-acre site in Batu Kawan.
- Penang Development Corp (PDC) agrees to sell 750 acres in Batu Kawan to Abad Naluri for RM3 per square foot, with 300 acres earmarked for the new turf club.

2003:
- A preliminary agreement is signed between PTC and Abad Naluri. Abad Naluri advances RM10 million to PTC to acquire the PTC land in Batu Gantong for around RM488 million.
- Abad Naluri agrees to build the Batu Kawan race course for RM375 million, with a completion target of 2007.

2004:
- PDC enters a master agreement to sell eight parcels of land in Batu Kawan, totaling over 1,000 acres, to Abad Naluri. The 300-acre parcel for the new race course is priced at RM46 million.

2005:
- Layout plans for the Batu Kawan race course are approved.

2006:
- Abad Naluri submits applications for planning permission for PGCC on the PTC land.

2007:
- In October, then Prime Minister Tun Abdullah Ahmad Badawi launches the PGCC project. However, the acquisition of the PTC land is not completed, and work on the Batu Kawan race course has not started.

2008:
- The PGCC project fails to take off after the new state government takes over following the March 8 general election.
- Global Oriental Bhd sells its stake in Abad Naluri to Kiara Ikhtisas for RM2 million in October.
- Datuk Patrick Lim Soo Kit steps down as chairman and executive director of Global Oriental Bhd in October.

2009:
- In July, PTC terminates its agreements with Abad Naluri due to the latter's failure to pay liquidated damages for delays in building the new turf club in Batu Kawan.

2011:
- A 'compromise' is reached between Abad Naluri and PDC.
- Abad Naluri enters a supplemental agreement with PDC to acquire 145 acres in Batu Kawan upon fulfilment of certain conditions.
- Equine Capital (formerly Global Oriental) acquires the rights to develop 126.04 acres in Batu Kawan from Abad Naluri for RM16.7 million, earmarked for mixed development.

As Barisan Nasional is now part of the unity government with Pakatan Harapan and the project is set to be revived, there are questions about whether $GOB / 1147 (GLOBAL ORIENTAL BERHAD) will still be contesting? Speculation suggests that Tan Sri Desmond Lim controls GOB, which is plausible given that the company has developed projects under the "Pavilion" brand, such as Pavilion Genting Highlands and Pavilion Embassy. Additionally, GOB previously developed and owned Da Men Mall, a poorly performing mall later sold to $PAVREIT / 5212 (PAVILION REAL ESTATE INVESTMENT TRUST).

Read more: https://cutt.ly/uegddhEQ