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FoR betteR PeRFoRmAnce Annual Report 2022 71

INVESTMENT REVIEW

SUBSIDIARIES

A) KWEST SDN BHD Andaman (Phase 2A), Penang
Incorporated in 2017, KWEST is a Andaman (Phase 2A) is a 253-acre integrated mixed-use development in Penang
wholly-owned subsidiary of KWAP with a development horizon of up to 20 years and a GDV of RM22 billion. KWEST
which serves as an investment and E&O (jointly known as PMSB are the master developers for this flagship
platform for real estate development. development, in which KWEST owns 33.18 acres of freehold land.
KWEST’s focus is to realise higher
returns within acceptable risk The inaugural product launch in January 2022, called The Meg, consisted of
parameters and provide a healthy 1,020 fully furnished serviced apartment units targeted for young executives
pipeline of greenfield and brownfield and first home buyers with an estimated GDV of RM650 million. The Meg had
development/redevelopment assets received overwhelming response with 89% of the units being sold with a total
as part of KWAP’s Real Estate AUM.
sales value of RM587.8 million as at 31 December 2022, and is on track for
Currently, KWEST has two major completion in the fourth quarter of 2025.
ongoing projects:
The Andaman Bridge linking Penang Island to Andaman was completed in the
i. Andaman in Seri Tanjung Pinang fourth quarter of 2022 and provides easy access and connectivity to Andaman’s
2, under Persada Mentari Sdn Bhd sales gallery and show units. This will be followed by a secondary bridge
(PMSB) a joint-venture on an 80% linking Andaman to Georgetown’s famous Gurney Drive which is targeted for
Eastern & Oriental Berhad and 20% completion in 2024.
KWEST basis; and
Following the successful launch of The Meg, PMSB targets two more launches
ii. Compass@Kota Seri Langat, a in 2023 to diversify the product mix and capture a wider target market. This
joint-venture on a 60% Permodalan includes Arica, which is a low density 380-unit serviced apartment with a target
Nasional Berhad (PNB), 20% AREA GDV of RM369 million targeting young families, as well as 69 units of landed
Industrial Development Holdings
and 20% KWEST basis. homes catering for larger, mature families with a target GDV of RM242 million.

Catching up after the two years of Andaman Island has been awarded the GreenRE (Green
pandemic disruptions, these projects Real Estate) Township Provisional Certification (Platinum) in
have a combined Gross Development December 2022, signifying PMSB’s commitment to create
Value (GDV) of RM23 billion, with a sustainable integrated mixed-use development. Both
a total committed investment of The Meg and Arica are also expected to receive the same
RM881 million. KWEST has made accreditation in 2023
significant progress on these current
developments together with its joint-
venture partners.