E&O receives RM780mil from AmBank for project

KUALA LUMPUR: AmBank Group (AMMB) has granted a RM780mil financing facility to Eastern & Oriental Bhd (E&O) for the development of phase two of their project, Andaman Island in Penang.

The financing will be used on reclamation and infrastructure works for phase two, consisting of 507 acres.

The works are estimated to be completed by 2028 and have already started.

Andaman Island is reclaimed land totalling 760 acres, making it the single largest development on the island.

The entire cost for reclamation and upgrading of the infrastructure of Andaman is estimated to be about RM4bil.

Set to be a 30-year project, its phase one consisting of 253 acres, was completed in 2019 whereby six developments totalling RM3bil were launched with good take up rates.

Projects like The Meg, Arica, Fera and Senna’s received strong market responses, leading the group to convey the same optimism for the different elements within the township that will be built over time.

In addition to that, the opening of Gurney Bridge by the end of this year will further enhance connectivity to Andaman and accelerate its development.

Managing director Kok Tuck Cheong said Andaman will not just be another township, but rather the premier address on the island with an estimated gross development value of more than RM70bil.

According to Kok, the development is being envisioned to become a sustainable, iconic and smart city.

“We reckon that there will be no less than 250,000 residences on the island. We aim to position it as an international destination that will attract investors, residents and visitors from across the globe,” he said during the signing ceremony with the bank here yesterday.

He added what sets them apart is the future-proofing of their products particularly in compliance with environmental, social and governance standards and green elements.

“Our commitment to the market is that this project is going to be a green and sustainable project.

“Like with our previous projects say 30 years ago, today it is still fresh and contemporary. This is what happens with a well-planned township,” he said.

Meanwhile, this is not the first time AmBank has granted financing to a development by E&O.

The bank granted RM450mil to E&O’s wholly-owned subsidiary, Tanjung Pinang Development to develop the earlier stages of Andaman back in October 2023.

AMMB managing director of business banking Christopher Yap said the bank had established a solid relationship with the developers for many years, and are proud to be a key financial partner for this project.

He said the Penang property market has continued to demonstrate resilience, evident by research.

“This financing has demonstrated the bank’s ability to structure innovative financing solutions for large-scale projects that align with Malaysia’s green growth agenda. We remain committed to supporting E&O while continuing to unlock opportunities to drive sustainable developments.”