TANCO Holdings Bhd is banking on the current slow property market and the weakening of the ringgit to drive more interest to its resort development in Port Dickson, Negri Sembilan.
The company is developing the RM5 billion sea-fronting Palm Springs Resort City via its wholly-owned unit Palm Springs Development Sdn Bhd.
Its group managing director Andrew Tan Jun Suan is cautiously optimistic that the project will garner interest from property buyers and investors.
“The depreciation of the ringgit means more Malaysians would be looking at travelling within the country rather than overseas because of the current value of the local currency.
“It also means more foreigners would come to Malaysia as it would give them better value. Our project will not only have hotels but also leisure activities to drive tourism,” Tan told NST Property.
Bolstered by the Malaysia Vision Valley integrated economic development, Port Dickson would continue to grow as a tourism destination, he said.
The first phase of the 162ha project, Splash Park, has garnered a 70 per cent take-up rate, achieving a gross development value of RM90 million for its residential units.
Splash Park comprises serviced apartments and a water theme park.
Other components of the self-contained resort development encompasses a spa retreat, a retirement village, hotels and a wellness zone.
Last year Tanco inked a memorandum of understanding with Hong Kong-based private equity firm Evergreen Offshore Inc to help develop some components of the project.
It is understood that the partnership will spur the development of a Double Tree by Hilton Hotel and a convention hall in the resort.
“Port Dickson has been a popular tourist destination even since the colonial days and today attracts up to 5.7 million tourists a year. We are building based on this numbers,” said Tan.
Meanwhile, Tanco also plans to develop a resort-based development in Kuantan, Pahang.
Tan said the project is currently in the planning stage but will be developed concurrently with the development of Splash Park.
“We are doing the feasibility study. The land is not big... it is suitable for a resort with up to 300 rooms,” he added.