GEORGE TOWN, July 2 — A total 803 units of medium-cost and low-medium cost housing will be built at the Sandiland Foreshore by 2020, according to an agreement between Penang Development Corporation (PDC) and Tanjung Villa Development Sdn Bhd signed today.

The Penang state government awarded the RM245 million project to Tanjung Villa Development for a tender of RM36 million after the Request for Proposal ended in September last year.

PDC signed the agreement with Tanjung Villa for a joint development of 4.23 acres of land at Sandiland Foreshore.

In the agreement, the 54 existing tenants on the land will be paid RM1,500 each in relocation costs and subsequently RM700 for monthly rentals until the completion of the project.

Penang Chief Minister Lim Guan Eng, who witnessed the signing of the agreement today, said all the existing residents agreed to the project.

He said these residents will also be given first priority to apply for the units in the project.

“Tanjung Villa will complete the development within five years from the date of this joint development agreement,” he told a press conference after the signing ceremony.

In the project, there will be a total 482 units of medium cost apartments with 241 units priced at RM400,000 each, 161 units at RM300,000 and the remaining 80 units at RM200,000.

There will also be 321 units of low medium cost units priced at RM72,500 per unit.

Lim said there will be a commercial component in the project but the maximum total built-up space will not exceed 90,014 sq ft.

“The developer is not allowed to set up small office home office (SOHO), serviced apartment, business or medical suites,” he said.

The developer is also required to provide at least one complimentary car park for each unit of the medium cost housing with an additional allocation of 10 per cent for visitors car parks.