The Penang government today witnessed the signing of a joint-venture between its investment arm and Syarikat Tanjung Villa Development Sdn Bhd to build affordable housing with a gross development value of RM245 million.

The developer will resolve, among others, the squatter problem when developing Sandilands Foreshore on Jalan CY Choy, Chief Minister Lim Guan Eng said.

Tanjung Villa will collaborate with Penang Development Corporation (PDC) to develop the 4.3-acre site there to provide affordable housing, as well as alleviate the problem of 54 squatter families at the site.

“Tanjung Villa will, at its own cost and expense, undertake to compensate residents, squatters, temples, shrines, offices, warehouses, buildings and other structures on the site,” Lim said at the signing ceremony between PDC and the company at Komtar.

“The company will pay a minimum of RM700 a month as rental to tenants until the completion of the low-medium cost units, and pay a one-time minimum of RM1,500 as relocation cost to the house owners,” he added.

Lim said the developer would hand over 150 units of low-medium cost units and car parks, free, to the state government.

Families, tenants, owners of warehouses and workshops and other residents will be given priority to buy units, but at no discounted price and subject to approval by the State Housing Department.

The developer will be responsible for the repair and construction of temples and shrines at the site, at its own cost, Lim said.

Warehouse owners to be compensated

Tanjung Villa will also pay compensation to owners of warehouses and workshops, based on their agreement, he added.

The Penang government has been constantly criticised for not building enough affordable houses for the people, although the state has announced several housing projects in the pipeline.

To be completed in five years, the Sandilands Foreshore project will see the construction of 482 medium-cost apartments (at costs ranging between RM200,000 and RM400,000), 321 units of low-medium cost units at RM72,500 each and related commercial space.

Lim said the maximum built-up for the commercial content would not exceed 90,014sq ft.

"The developer is also not allowed to set up small office-home office or SoHo units, service apartments, business or medical suites and any other development that is similar to Soho," Lim said.

"The commercial development is also subject to the terms of the local council, the state government and its technical departments," he added.