Two rows of white terraced heritage houses located behind the famous Bangkok Lane mee goreng shop in Penang are among seven clusters of properties up for sale. All 39 of the freehold units have been put up for sale through tender.
Located further along Jalan Burma, eight shophouses — beginning from the Swee Kong coffee shop, plus three more behind it — and 10 nearby stores are also up for tender. These properties are situated across from the Pulau Tikus police station.
A local agent familiar with the properties estimates their combined value to be between RM300 million and RM400 million ($90.3 million and $120.3 million).
The freehold properties belong to the trust of the late Cheah Leong Keah, a prominent Penang tycoon whose businesses ranged from transport to rubber estates and real estate. The Edge understands that one of the stipulations in the trust is that the properties must remain intact for 80 years after Cheah’s passing in 1941. They have since matured and are now for sale.
Born in 1875 in Swatow, China, Cheah moved to Penang in 1914 and founded Chin Seng & Co. He was instrumental in bringing motor vehicles and fire engines to Penang, in collaboration with business partners such as the Sarkies Brothers of the E&O Hotel.
On advertisements calling for bids for the properties and documents sighted, CBRE|WTW is listed as the exclusive marketing agent.
When contacted, the agent declined to reveal the value of the properties listed but said the bidding process would close on May 9.
The Edge understands that the agent is accepting bids for individual houses, several houses and even the whole cluster of properties.
The 2.32-acre plot on Jalan Kelawai is located minutes away from Gurney Paragon Mall (Picture: CBRE|WTW)
What the properties entail
The first cluster includes the two rows of pre-war, 2-storey terraced heritage houses (39 units) on Bangkok Lane and two detached homes along Jalan Kelawai. The total land area is 55,273 sq ft.
A local source estimates the value of this cluster at about RM70 million to RM75 million, which translates to RM1.5 million to RM2 million per house. The area is ideal for boutique hotel development, with conservation regulations ensuring the preservation of the original facades.
Another local agent familiar with these properties tells The Edge that a heritage home in this prime area typically sells for between RM1.5 million and RM2.2 million, depending on its size, restoration quality and architectural significance.
The well-preserved Straits Eclectic style of the homes, with original timber windows, intricate facades and heritage tiles, makes them particularly appealing to buyers who value heritage conservation. This cluster has considerable cultural value, as Bangkok Lane has been a prominent landmark in Penang’s heritage conservation efforts, further elevating its long-term prestige.
Boutique hotels are a strong possibility, especially with George Town’s Unesco heritage status attracting steady demand for heritage stays. There is also potential for F&B spaces and cultural retail shops, as the surrounding area enjoys high foot traffic, similar to existing successful ventures such as China House and Muntri Street’s cafes.
However, challenges include adhering to George Town’s Special Area Plan, which restricts property modifications, as well as high restoration and maintenance costs, estimated at RM500 psf to RM1,000 psf.
Another cluster consists of 11 shophouses and 10 stores on Jalan Burma and Solok Moulmein, located opposite the Pulau Tikus police station. This cluster includes four main-road-facing shophouses, one of which houses the Michelin-guide restaurant Flower Mulan Nyonya Café, which is situated closer to the Bangkok Lane mee goreng shop.
An agent says these properties have strong commercial potential due to their location in a bustling area known for its F&B scene.
“They could be transformed into curated F&B spaces, retail outlets or even boutique offices, co-working spaces, or creative studios on the upper floors catering to architects, designers and niche businesses looking for unique spaces. Ground-floor units are expected to generate high rental yields, around RM10 to RM20 per sq ft,” the agent adds.
Along Jalan Burma, opposite Union Chinese Primary School, are another 10 pre-war shophouses valued at about RM1.3 million to RM1.5 million each.
Nearby, on Jalan Phuah Hin Leong, are 34 units of two-storey pre-war terraced houses. With built-ups of about 2,000 sq ft, the houses have an estimated value of RM800 psf to RM900 psf.
Another key property is a 2.32-acre plot on Jalan Kelawai and Leandro’s Lane, just 100m from Gurney Paragon Mall. Currently home to eight single-storey bungalows, this land is seen as a prime development opportunity, with an estimated value of RM125 million to RM135 million.
“Given its proximity to Gurney Drive and Pulau Tikus, the site represents a rare and strategic redevelopment opportunity with potential for branded serviced residences, premium dining or lifestyle retail spaces. The land is also suitable for corporate headquarters, medical centres or private educational institutions. However, potential developers will need to consider factors like zoning laws, traffic issues and urban planning constraints in the area,” the agent says.
The agent notes that only established developers or consortiums with strong financial backing would be able to undertake such a project.
“Developers must also ensure alignment with plot ratio regulations, zoning laws and heritage buffer zones that may impact the development scope. There are also traffic and urban planning constraints to be taken into consideration. Jalan Kelawai and its surrounding roads already experience high traffic volume. Therefore, thoughtful planning to minimise congestion and integrate well with existing infrastructure will be essential.”
Two smaller land parcels of about 7,000 sq ft each located on Jalan Transfer and Jalan Trusan are also up for sale. Based on previous transactions nearby, an agent estimates the value for the Jalan Trusan plot at around RM250 psf to RM400 psf, and the Jalan Transfer plot between RM600 psf and RM900 psf.
“While these smaller plots may limit large-scale developments, they are attractive for specialised commercial or boutique residential projects. These plots may also be suitable for medical or wellness facilities, such as private medical practices or wellness centres,” the agent says, adding that some investors may opt to retain the properties for future appreciation or merge them with adjacent lots to enable larger-scale development projects.
Rosalyn Poh is an associate editor at The Edge Malaysia. This story first appeared in the Corporate section of The Edge Malaysia Issue 1569, dated April 7
