Share
BATU KAWAN (April 11): PE Land Group will anchor Capstone Corporate Suites with a 35,000-sq ft regional office upon completion, marking a key milestone for the 36-storey Grade-A office tower in Bandar Cassia, and reinforcing Batu Kawan’s emergence as Penang mainland’s business hub.
Developed by PE Hospitality (Penang) Sdn Bhd, a member of PE Land, the project forms part of the group’s broader development in Bandar Cassia’s central business district (CBD).
Positioned as Penang mainland’s first Grade-A and GBS (global business service)-ready office tower, Capstone offers 395 office units ranging from about 1,238 sq ft to over 3,000 sq ft, with flexibility to integrate units into larger configurations exceeding 35,000 sq ft. The development also includes 17 retail lots across multiple levels, including ground-floor retail, mid-level communal areas, and a rooftop terrace.
The project is connected to key transport routes including the Second Penang Bridge and the North–South Expressway (NSE), with access to Penang Sentral intermodal transportation hub, Penang International Airport, and Butterworth Port.
Connectivity, early positioning and long-term strategy
PE Land Group CEO Joanna Ling said Capstone’s development is closely aligned with Batu Kawan’s emergence as a major growth centre on Penang’s mainland.
Connectivity, she noted, was a defining factor in the group’s early assessment of the area, extending beyond the Second Penang Bridge to a broader regional transport ecosystem.
“What stood out to us was not just the Second Penang Bridge. It was the broader connectivity ecosystem: the airport near the bridge, [and it being] directly linked to the NSE, connecting Penang seamlessly to the rest of Malaysia,” she said during a business forum held on Thursday.
Held at the Design Village Mall here, the event saw industry players discussing the township’s evolving role within the northern region’s economic landscape.
Ling added that the Penang state government’s master plan provided a clear long-term development direction, positioning Bandar Cassia and Batu Kawan as a key growth node supported by infrastructure planning.
“We met the Penang state government, and they presented a comprehensive master plan. Their vision was clear: to position Bandar Cassia and Batu Kawan as a key growth centre,” she said.
PE Land’s approach in Batu Kawan reflects its earlier experience in emerging markets such as Sarawak, where it developed retail assets ahead of widespread market adoption.
“We built the first shopping mall in Kuching when the concept was still unfamiliar. Then we did the same in Bintulu (both in Sarawak). So building the first shopping mall in Batu Kawan was not intimidating for us,” she said, referring to Design Village Mall.
“The mall itself is treated as a living, evolving asset. It will continue to be upgraded, expanded and adapted over time,” Ling said.
She explained that the group prioritises early entry and sustained commitment over trend-following strategies.
“We are not a company that follows trends. We enter markets early, build, and commit for the long term. Sustainability is a core value,” she stressed.
Ling also noted that Capstone aims to address a key structural gap in the mainland office market.
“There is currently a lack of modern office spaces on the mainland. Most existing options are over 25–30 years old, leaving limited choices for companies looking to upgrade,” she said.
Capstone is part of a broader live-work-play ecosystem within Bandar Cassia, where residential, commercial and industrial components are gradually forming an integrated township.
Future phases within the group’s land bank include approximately 990 residential units, a hotel under the Ascott brand, and further commercial components.
“The current land bank spans about 40 acres, with ongoing plans covering residential, commercial, hospitality and potential mall expansion,” Ling shared.
Infrastructure expansion driving activity to Batu Kawan
Royal Institution Surveyors Malaysia Fellow and Ho Chin Soon Research chairman Ho Chin Soon said Penang’s development pattern can be understood through a “centre of gravity” shift driven by infrastructure expansion.
“[Last time], areas like Batu Kawan had no factories, no CBD and very limited industrial activity,” he said.
Then, development began picking up after 2012 and accelerated with the establishment of Batu Kawan Industrial Park around 2016, transforming the area into a major growth node.
Today, he said the transformation is evident through industrial expansion, rising population, and increasing commercial activity.
“The growth is real and happening. Even daily experiences such as heavy traffic reflect the surge in activity,” he quipped.
Higher-value transactions and growing population
Meanwhile, EdgeProp Malaysia editorial and branding head Jacqueline Lim highlighted that higher-value property transactions in Batu Kawan have been increasing, with the share of transactions priced RM600,000 and above rising notably between 2021 and 2025.
“This reflects a stronger demand in Batu Kawan from middle-income buyers and households upgrading within the area. The shift in transaction proportions signals a maturing market, supported by job creation, industrial growth, and improving connectivity that continues to attract both buyers and renters into Batu Kawan,” she said.
Lim added that Penang mainland is experiencing notable population growth, particularly in Seberang Perai Selatan, where Batu Kawan is emerging as a key driver.
“The population in Seberang Perai Selatan is projected to grow from 184,000 in 2020 to 188,100 in 2024, before reaching 321,500 by 2030, representing a 70.9% increase.
“Taken together, the data shows that Batu Kawan is not only attracting higher-value property transactions but is also at the centre of the fastest population growth trend, reinforcing its position as a key emerging growth corridor in Penang,” she said.
Demand expected to build ahead of completion
Also present at the event, real estate consultancy PropertyMart director Eugene Tan said market interest for Capstone has already formed during the development stage.
He added that the project stands out due to its higher-grade infrastructure, facilities and concept compared to other office offerings in Penang.
UPLand Realty (M) Sdn Bhd managing director Max Wong said Capstone’s positioning as a unique product on the mainland gives it strong potential, particularly in the current market cycle.
“Timing plays a critical role in the project’s prospects. A product like this may not have performed as well if launched several years ago, but it now aligns better with current market conditions.
With proper exposure, the project is expected to attract interest from both investors and occupiers,” he said.
..........
Get EdgeProp's montly print edition! Free delivery is available for selected regions. Subscribe now.
