Catalyst of CLMT - Gurney Bay (formerly known as Gurney Wharf) + Certain Unitholders' Plan of Proposing to CLMT to acquire Gurney Paragon from Hunza

CATALYST 1 - GURNEY BAY

全新的Gurney Bay ，相信会成为一个休闲娱乐公园。

随着槟州元首敦阿末弗兹昨日(16 August 2023) 主持动土，葛尼水岸（Gurney Wharf)首次阶段工程开展，意味着槟州发展迈向另一新里程碑。

葛尼水岸占地约50英亩，已完成填海工程，首阶段的工程是邦咯路处开始，属绿色公园项目，所涉及的实体建筑不多，预计用时12个月来完成。第二阶段工程因涉及的实体建筑较多，有小贩中心、多层停车场，因此用时较长，约需24个月。两个阶段的工程会同步进行。

葛尼水岸一旦落成，除了为槟州增值，也为周边区域带来经济效应，让人充满期待。

Gurney Plaza's value will be enhanced due to the State Government has promised no high rise buildings along the coast line. There will be open greenery for the public to enjoy. If everything is carried out according to plan, the materialization of this development will be a major plus point for the real estate lining Gurney Drive, as their seaview will not be blocked, but instead enhanced by the wider shorefront. 

Foreign Tourists as well as local people from other states will be attracted by the very appearance of Gurney Bay. Not to worry that the existence of Gurney Bay is a threat to Gurney Plaza, it will be a catalyst to Gurney Plaza to be more competitive.

According to my discussion with a professional valuation expert (one of my friends), the value Gurney Plaza as well as real estate surrounding Gurney Bay will be ENHANCED SIGNIFICANTLY! This will bring significant improvement in Profit or Loss of CLMT.

Importantly, more and more tourists will be knowing Georgetown, Penang and this new tourist spot --- > GURNEY 

As per my discussion with some businessmen carrying out retail business at Gurney Plaza, the development of Gurney Bay will be bringing more and more potential customers!

CATALYST 2 - CERTAIN UNITHOLDERS' PROPOSED PLAN TO ACQUIRE GURNEY PARAGON FROM HUNZA

Certain valued unitholders or shareholders or CLMT, might plan to collectively propose to CLMT Management to consider acquiring Gurney Paragon as an EXPANSION PLAN!

At present, Hunza management might not be able to maximise the value creation of Gurney Paragon. This will be a good opportunity for CLMT to consider acquiring Gurney paragon and re-design the business structure so as to unlock the value of this premises!

Gurney Bay, is a waterfront area on the northern coast of George Town, Penang. Built on reclaimed land, it is in front of Gurney Drive. The area was originally named Gurney Wharf but renamed to Gurney Bay to better represent the location and concept, considering the original name was misleading, as the project was neither a wharf, a quay or a pier.

Gurney Bay occupies 24.28 hectares/60 acres of reclaimed land in the bay that was once known as Teluk Ayer Rajah. The area will have a seaside Food & Beverage precinct, water gardens, a 400-meter sandy beach and coastal groves. There will be a car park with above and underground parking with 1,500 parking bays. The development, stretching from Bagan Jermal to Pangkor Road, is intended to position Penang as a premier tourist destination. The development will be carried out in two phases, called Priority 1 and Priority 2.

Items to be completed under Priority 1 include a children's play area, skate park, viewing deck (south vantage point), public toilets, promenade, hawker stalls, retail areas, recreation park, hawker kiosks, open car park space, and water body (south) reclamation area. Priority 1 is expected to open to the public in July 2023. As of now, Priority 1 has not yet been opened to public. Expected delay but will be completed not more than 12 months. 

Items to be completed under Priority 2 include a hawker centre, retail area, convenience stores, viewing deck (north), public toilets, kiosks for additional hawkers, multi-storey car park, open car park, water garden, surau, jetty for water taxis, manmade beach, broadwalk, refuse centre, and water body (north). Priority 2 is expected to be completed in 2025.

Gurney Bay is a Penang State Government public initiative to be undertaken by Tanjung Pinang Development Sdn Bhd, a subsidiary of Eastern & Oriental Berhad. The developer has engaged the services of GDP Architects for the overall masterplan, Grant Associates for landscaping, and Jerde for the retail F & B precinct.

Updates on Gurney Bay

3 July 2023
Buletin Mutiara reports that Phase One of Gurney Bay will open to the public in July 2023, said Jagdeep Singh Deo, chairman of the caretaker Penang Local Government, Housing, Town and Country Planning Committee.

26 May 2023
Buletin Mutiara reports that the much anticipated Gurney Wharf has been officially renamed Gurney Bay. This follows criticism that the original name was not suitable, as the project is neither a wharf, a quay or a pier. The name Gurney Bay was chosen based on results of an online poll.

11 May 2023
Buletin Mutiara reports that Phase One of Gurney Wharf is expected to be completed and open to the public in July 2023.

14 February 2023
The Star reports that Phase One of Gurney Wharf is scheduled for completion in May 2023.

8 October 2022
Buletin Mutiara reports that Priority One of Gurney Wharf is expected to be completed in March 2023. Facilities under Priority One are a children's playground, skate park, viewing deck with south vantage point, public toilets, pedestrian promenade, traders' kiosks, recreational park, landscaped area and open space car parks. Construction works on Priority One and Priority Two are happening concurrently. The whole Gurney Wharf project is expected to be fully completed by 2025.

20 December, 2019
The Star reports that the local government will "reclaim two water bodies for an additional 5.9 hectares of land", meaning draining the Sungai Bagan Jermal basin and Teluk Ayer Rajah, to give a total of 53.05 hectares of reclaimed land, of which 30.1 hectares will be put aside as public space. Reclamation of that land is expected to commence in June 2020. Work on Gurney Wharf will start from the Pangkor Road end and work its way towards Bagan Jermal, with construction of public recreational space such as a promenade, skate park, children's playground, and so on. Planned will be a new hawker centre and pier for water taxi.

22 July, 2019
The Star reports that State Local Government Committee chairman Jagdeep Singh Deo said that the Penang State Government would tap into the expertise of both local and international consultants for the design and construction of a world-class park at Gurney Wharf. Tender for the design will be called by the end of the year.
https://www.thestar.com.my/news/nation/2019/07/22/penang-govt-to-tap-into-the-best-for-gurney-wharf/

21 July, 2019
The New Straits Times reports that the ongoing Gurney Wharf reclamation project has been singled out as a good example of how the proposed Penang South Reclamation (PSR) project could be implemented.

8 May, 2019
The Star reports that Local Government Committee chairman Jagdeep Singh Deo wants the government to consider Gurney Wharf as the location for the new state assembly building.
https://www.thestar.com.my/metro/metro-news/2019/05/08/gurney-wharf-sitefor-august-house/

8 January, 2019
Property Guru reports that Penang is to create a network of parks that are linked to waterfront amenities. 4 Oct, 2018
The Star reports that Penang is planning to transform Gurney Wharf into a must-see attraction, even better than initially planned.

https://www.thestar.com.my/news/nation/2018/10/04/a-wharf-better-than-just-world-class-penang-planning-to-transform-gurney-drive-into-a-mustsee-attrac/

25 February, 2016
StarMetro reports Penang Chief Minister Lim Guan Eng saying that the cost of the reclamation for Gurney Wharf will be taken care by Eastern & Oriental Berhad, while the State Government will pay for the Gurney Wharf project itself, including cost of infrastructure, consultants and experts. The reclamation work alone is expected to cost RM1.07 billion. This reclamation is not only for the Gurney Wharf "Park On the Sea" project, but also includes that for Phase 2A of Seri Tanjung Pinang. Of the 54 hectares on the Gurney foreshore to be reclaimed, 24.28 hectares will be used for the Gurney Wharf project while the balance will be government reserve land. Mr Lim also states that the reclamation platform on the new coastline will be 5.5 meters high, which is higher than the height of the 2004 tsunami, which hit Gurney Drive at 4.2 meters.

Map of Proposed Gurney Wharf park and recreation precinct

Credentials of the architectural firms engaged for Gurney Wharf

GDP Architects is a renowned Malaysian architecture firm which won the Aga Khan Award for Architecture (2005-2007) for their work on Universiti Teknologi PETRONAS. It also received awards in 2015 for 1Sentrum and Nu Sentral.

Grant Associates is a renowned landscape architecture firm in the United Kingdom. It is the architect involved in creating Gardens by the Bay in Singapore.

Jerde Partnership is a visionary architecture and urban planning firm with its headquarters in Los Angeles. Established in 1977, it was involved in various major urban projects including the 1984 Olympics, the Bellagio in Las Vegas, East Harlem City of Dreams, Dubai Festival Waterfront Centre and Roppongi Hills.

Features of Gurney Wharf

One of the major features of Gurney Wharf is Water Gardens. This is a landscaped garden with various water features such as ponds and wetlands, providing the public an educational experience of water plants and habitat. The gardens will feature an innovative storm water filtration system.

Another feature of Gurney Wharf, according to the artist impression, are two pier protruding into the sea and a seafront recreation precinct right over the water. The entire breath of Gurney Wharf will be landscaped greenery, with a wide promenade finished with the distinctive wavy Portuguese pavement. A skate park is also included while Gurney Drive's casuarina trees are retained.

The Gurney Expressway, now under finalization, is expected to pass through the Gurney Wharf area. To ensure the safety of the public, a 2-kilometer anti-climb fencing will be erected from Gurney Drive to Pangkor Road. The fencing alone is projected to cost RM1.3 million. The public will continue to have access to Gurney Drive.

Geographic perspective of Gurney Wharf

Gurney Wharf is to be developed on the northern coastline of George Town. The area is a bay that curves from North Beach to Tanjong Tokong. The bay is known as Teluk Ayer Rajah. The coastal boulevard through the area, Gurney Drive, is a major shopping and food destination. Sungai Bagan Jermal empties into the bay, and will most likely be canalized into the storm water channel and wetlands. Slightly to the north is another river, Sungai Balik Batu, which has already been canalized and flows to meet Sungai Bagan Jermal. The rivers discharge into a coastal area of mudflats and coastal mangroves.

Historic perspective of Gurney Wharf

The Gurney Wharf area occupies part of Teluk Ayer Rajah, or "Bay of Kingly Waters", which was where arriving ships stopped over to replenish their water supply from the waterfall. There was a no longer extant estate named after the bay. A residential road through the inland area was also named after the bay. The last major coastal reclamation carried out in the area was completed in 1934, and it created Gurney Drive.

Opinion and Conclusion over Gurney Wharf

On the whole, the Gurney Drive area badly needs a major facelift to bring it on par with other international waterfront destinations. In a highly competitive world, we cannot afford to lose out. The present Gurney Drive is aged; it offers no greenery; the promenade is not wide enough for recreational activities, there's nowhere to picnic without smelling exhaust fumes, or spacious enough to contain the amount of traffic converging on it. At the same time, with our increasing affluence, the people of Penang are now more sensitive of the environment, and want to enjoy recreation in proximity to nature.

The creation of the water gardens and wetlands are welcomed, as a means for channeling the flow of Sungai Bagan Jermal and Sungai Balik Batu, and the creation of a natural habitat for wildlife. It also offers the State Government an opportunity to showcase tropical wetland flora and fauna. Engaging Grant Associates, the landscape architecture firm that created Gardens by the Bay in Singapore, provides some comfort over the level of expertise being applied to this project.

Gurney Drive is Penang's most important promenade. It is near and dear to the hearts of the people. There is no room for error, no second chance. If the State Government screws this up, it can kiss itself goodbye.

With the Gurney Wharf project, the State Government has promised no high rise buildings along the coast line. Instead there will be open greenery for the public to enjoy. If everything is carried out according to plan, the materialization of this development will be a major plus point for the real estate lining Gurney Drive, as their seaview will not be blocked, but instead enhanced by the wider shorefront. In this case, the present State Government appears serious in demonstrating to the public that not all land reclamation turns into dense housing development. There should be ample space for public recreation, and Gurney Wharf is the State Government's vision of Penang's new playground.

References: -

1) Article is extracted from Timothy Tye as well as his website www.penang-traveltips.com

DISCLAIMER:

This post or blog does not constitute BUY/SELL CALLS and it is just for information sharing. The author above won't be responsible for any parties relying on this information for investment decision.