A 60-acre parcel on Andaman Island, a reclamation project off Gurney Drive in Penang, is said to be a target of Sunway Group, whose flagship company is Bursa Malaysia-listed Sunway Bhd (KL:SUNWAY). Sources say the diversified group has had several meetings on the proposed purchase with Eastern and Oriental Bhd (KL:E&O), the developer of the reclaimed land.
“Negotiations are still ongoing, with pricing being the primary point of contention between both parties. This is not the first time that Sunway has expressed interest in acquiring a parcel of land on Andaman,” says a source.
It is said that Sunway officials first visited the site in the second half of last year and was prepared to offer RM600 psf, but the developer’s asking price was said to be around RM1,000 psf.
Just before Chinese New Year, the Sunway team visited the Andaman site again to reconsider the proposal to acquire land on the man-made island.
If successful, the RM1,000 psf transaction would be higher than the RM800 psf deal for the site where the Westin Hotel and Residences project is located. It would be lower, however, than the price of other land parcels in the vicinity that are being put on the market. For instance, it was reported that Consortium Zenith Construction Sdn Bhd is seeking RM1,400 psf for a 26-acre land parcel that has been reclaimed and is adjacent to Andaman.
“Prices in the reclaimed area off Gurney Drive have been rising because of scarcity premium and its waterfront location that is sheltered,” says a property executive.
Sunway’s plans for the 60 acres are not really known at this point, but sources say an integrated development that includes a medical centre, college and a shopping mall cannot be discounted. If Sunway does complete the Andaman purchase, it would not be the first major foray for the group on Penang island.
In 2014, a year after Sunway spent RM267.42 million to acquire four land parcels measuring a total of 24.46 acres in Paya Terubong from Lee Rubber Co (Pte) Ltd, the group disclosed plans to develop an integrated project comprising a medical centre, college and shopping mall with a net lettable area of one million sq ft on the site.
In 2017, Sunway executive deputy chairman Datin Paduka Sarena Cheah — who was then the managing director of the property division for Malaysia and Singapore — unveiled the proposed project in Paya Terubong as the RM2 billion Sunway Valley City. Spanning 24 acres (9.7ha), it was intended to be a four-phase, mixed-use development comprising shopoffices, serviced apartments, a shopping mall, a Sunway College branch campus, an office tower and a medical centre.
The unveiling was at the launch of Sunway’s new headquarters for the northern region in Anson Road, George Town. Sunway Valley City was touted as a game changer for Air Itam and Paya Terubong, bringing leisure and entertainment options to residents’ doorstep, but it failed to materialise.
According to sources, Sunway will revive the project and implement its blueprint in Phase 2 of Seri Tanjung Pinang (STP).
At the Sunway Healthcare Holdings Bhd (KL:SUNMED) IPO prospectus launch in late February, chairman Tan Sri Jeffrey Cheah said the group had identified Seberang Perai Central and Paya Terubong in Penang as sites for new hospitals. Jeffrey also mentioned Iskandar Puteri in Johor and Kota Bharu, Kelantan, as other sites for the group’s future medical projects.
In January this year, Sunway, via Sunway Bintang Sdn Bhd, acquired a 0.42ha freehold site in Pangkor Road, George Town, for RM61.45 million, or RM1,420 psf. Located about 500m from Gurney Bay, the site is intended for a RM274 million mixed-use development with serviced apartments and retail components.
The acquisition forms part of Sunway’s RM179.8 million exercise to replenish its development land bank and strengthen its pipeline of future projects.
As for E&O, its ambitious Andaman development is rapidly taking shape off Penang’s northern coast, with reclamation works for the 760-acre project now ahead of schedule and key infrastructure nearing completion.
The artificial island, situated opposite Gurney Drive and a short drive from George Town, represents the second phase of E&O’s broader 1,000-acre STP development. Phase 1 (STP1) covers 240 acres of reclaimed land and is linked to Andaman via the 950m four-lane Andaman Bridge.
Andaman’s development spans two phases. The first covers 253 acres with a gross development value of RM20 billion, while the second will encompass 507 acres with an estimated GDV of RM40 billion.
E&O has reclaimed 253 acres for Phase 1, which has seen the launch of five residential projects, including high-end condominiums and landed properties.
Reclamation for Phase 2 is now expected to conclude by end-2027 — about a year ahead of schedule — with full infrastructure works targeted for completion by 2029. The entire island will take about 35 years to build out.
Source: The Edge Malaysia (24 March 2026)