GEORGE TOWN: Eco World Development Group Bhd and Penang Development Corp (PDC) have agreed to rescind the letter of award (LOA) for the proposed RM10 billion Eco Marina mixed development project which includes a golf course at Batu Kawan on mainland Penang.
Eco World told Bursa Malaysia today that this is because studies carried out during the detailed planning process revealed that the golf course - originally planned to be built on 60.70 hectares - would require a larger acreage, thus adversely impacting the viability of the project.
Eco World had accepted the LOA for the project in April last year.
Under the proposed Eco Marina development, Eco World or its subsidiary was to buy 121.6 hectares of 99-year leasehold land in Bandar Cassia, Batu Kawan, for RM790.93 million to develop residential and commercial properties, and to lease the 60.70 hectares for a 30-year period (with an option to renew for another 30 years) for RM65.34 million to develop a golf course with a minimum of 18 holes.
“An announcement will be released in due course upon Eco World Bhd and the PDC entering into a deed of rescission to give effect to the rescission,” it said.
The Eco Marina development was reported to carry a gross development value of RM10 billion and will serve as Eco World's maiden waterfront project in Malaysia and is expected to take 10 years to be fully completed after it breaks.
The project's first phase is expected to include a mixed development of residential and commercial properties.
A golf course and club house were supposed to have followed in the subsequent phase.