KUALA LUMPUR: Ewein Bhd is partnering Consortium Zenith Construction Sdn Bhd (CZC) to jointly develop a freehold land in Penang for RM159.75 million in cash.

The parcel, about 4.34 acres (1.76ha), is slated for the City Of Dreams 2 development, Ewein said in a statement yesterday. Its current luxury seafront property development, City Of Dreams with a gross development value of RM800 million, is now completed.

Ewein said its subsidiary Ewein Zenith II Sdn Bhd (EZII) inked a joint-venture agreement with CZC on Nov 30, whereby EZII will pay RM159.75 million to CZC for the said parcel, while CZC shall procure the Penang government to alienate the plot to EZII as the registered owner.

“The said parcel will be alienated by the Penang state government as part of the consideration for construction works for the state project for major roads and [a] tunnel undertaken by CZC,” Ewein said.

EZII is wholly owned by Ewein Zenith Sdn Bhd, which in turn is 89%-owned by Ewein’s wholly-owned Ewein Land Sdn Bhd. CZC holds the remaining 11% stake in Ewein Zenith.

The plot, in the final stage of reclamation, is located along the foreshore of Gurney Drive, opposite Gurney Plaza and G Hotel in George Town. It adjoins the proposed Gurney Wharf, a 60-acre seafront public park also in the final stage of reclamation, Ewein said.

“Ewein Zenith is an Entry Point Project 10 (Wellness Resort) Champion, which will develop a development known as ‘Wellness City Of Dreams’ comprising, among others, a wellness resort, residential suites, retirement and healthcare wellness residential suites on the parcel at Gurney Drive,” Ewein said.

Ewein shares, with trading halted for an hour at 9am yesterday for the announcement, rose 2.65% or 1.5 sen to close at 58 sen on resumption of trading, valuing the group at RM167.5 million.