Guan Eng shows proof Bayan Mutiara land sold above market rate

KUALA LUMPUR, Feb 15 — Lim Guan Eng disclosed today valuation documents proving his government sold a 102.6-acre plot of prime land in Bayan Mutiara at over double the market rate, disputing Umno’s claims otherwise.

The Penang chief minister told a press conference that the land in question had been valued at RM84 per square foot (psf) for an 18-acre plot and RM65 psf for an 88-acre plot as of November 2009.

Lim reiterated his challenge today to Umno leaders, particularly Abdul Rahman, to bid for property in Bayan Mutiara at RM420 psf. — file pic“The smaller the plot, the higher the price,” he said.

Barely six months later on April 7, 2010, Lim said, the Penang government set its rate for the state-owned land at RM200 psf, well above the valuated price.

“When I decided to fix the price at RM200, everyone opposed. They said — you can’t sell it. But I said — let’s try. I prefer to fail trying than not trying at all ... luckily we succeeded,” he said.


Lim said the 102.6-acre plot — located near the Penang Bridge, the free trade zone and the Penang International Airport — was eventually sold off via open tender to the highest bidder, Ivory Properties Groups Bhd, which had offered RM240 psf, or a total of RM1.07 billion, to be paid up in five years.

“What else does Umno want to say? We are not Umno, selling at cheap prices. We sell at the highest price.

“Do not think that just because Umno is corrupt, we are corrupt too. Do not think that just because Umno sells land without open tender, we do the same ... or if they use money to put cows in condos, we do the same. No,” said Lim.

Umno leaders, including a Sabah MP Datuk Abdul Rahman Dahalan, had accused the Penang government of selling the prime real estate at a 50 per cent discount to private developers.

According to their allegations, the 102.6-acre plot in question was actually worth RM420 psf, well above the RM240 psf it was sold at.

Lim reiterated his challenge today to Umno leaders, particularly Abdul Rahman, to bid for property in Bayan Mutiara at RM420 psf.

“A person so far in Sabah wants to interfere in our affairs. So I challenge him ... we challenge Umno; if they say the land is actually worth RM420, then we ask them to buy it at that rate,” he said.

By Clara Chooi
February 15, 2012