The property developer’s unit, Bintang Sentral Sdn Bhd, has inked a deal to acquire two freehold parcels measuring 24.3 acres in Bandar Meru Raya, Ipoh.
It said the site is primed for a commercial mixed-use development that aligns perfectly with its core business. The theme park was built on a 21-hectare site, or about 52 acres, according to previous reports.
The land sale is expected to be completed in the second half of 2026.
IGB sees the land as a highly appealing investment with significant development potential, citing its reasonable purchase price, prime location, and supporting infrastructure already in place.
“The land parcels are strategically located along the North-South Expressway, offering prominent frontage views from the highway, favourable connectivity to the Ipoh North Toll Plaza and easy access for commuters,” it said in a statement yesterday.
Conceived as Asia’s first fully animation-based theme park, it was finally opened in mid-2017 with attractions based on characters such as The Smurfs, and BoBoiBoy.
However, it only garnered lukewarm response before permanently closing its doors in January 2020.
The park was developed at a whopping RM520 million by Animation Theme Park Sdn Bhd (ATP), which was 51%-owned by Perak Corp Bhd via its unit PCB Development Sdn Bhd.
Facing financial difficulties, ATP defaulted on a RM25.7 million principal repayment of a term loan of RM245.1 million with Affin Hwang Investment Bank in September 2019.
This triggered a cross default on borrowings totalling RM191.8 million, resulting in Perak Corp being declared a Practice Note 17 (PN17) company in February 2020.
Its largest shareholder with a 52.9% stake is Perbadanan Kemajuan Negeri Perak, the state economic development corporation.
Perak Corp subsequently offloaded PCB to Rescene Sdn Bhd for a paltry RM1 in March 2024.
However, the biggest long-term winner appears to be IGB, which has acquired 24 acres of prime land for a reasonable sum.
IGB said the acquisition would enhance its presence in Perak, providing the group with “a foundation to capitalise on the future growth and success in the state”.
Established in 1964, the property group is best known for developing the Mid Valley Megamall and The Gardens Mall.
It has a diversified portfolio spanning property investment and management, property development, construction, hospitality, and real estate investment trust (REIT) management.
At the time of writing, IGB shares were down 3% or 10 sen at RM3.21, valuing the group at RM4.36 billion.