Highlight JB property sale sets new record

Highlight JB property sale sets new record
Business & Markets 2013
Written by Lyana Shohaimay of theedgemalaysia.com
Friday, 27 December 2013 08:41

KUALA LUMPUR: Another record- breaking land deal was transacted in Johor Baru. This time, the beneficiary was Iskandar Waterfront Holdings Bhd (IWH), which sold 36.8 acres (15ha) of land in Danga Bay, Johor to Singapore-registered developer Hao Yuan Investment Pte Ltd for RM1.6 billion.

The price translates into RM998 psf, surpassing the previous transaction of RM890 psf when the Sultan of Johor sold 116 acres of land to a China-based company, Guangzhou R&F Resources Pte Ltd, for RM4.5 billion.

In its press statement yesterday, IWH said the land was acquired by Hao Yuan, which is controlled by shareholders from mainland China, for an integrated mixed-use project with a gross development value of RM8 billion, to be built over a period of eight years.

According to the statement, IWH and Hao Yuan have formed a joint venture (JV) company, Pristine Sun Properties Sdn Bhd, with Hao Yuan holding a 60% stake, to develop the area.

The development will introduce several high-end residential, commercial and retail properties to Danga Bay, including a tower slated to be the tallest in Malaysia and a landmark for Iskandar Malaysia.

IWH said Hao Yuan has an impressive development track record in Singapore with the Forestville executive condominiums — a luxury condominium development by the sea — listed as one of its projects.

“With a presence of over 14 years in Singapore, we aim to create an inspiring lifestyle and landscape that will propel Danga Bay into a 21st century global city,” said Hao Yuan president Du Zhen Zheng.

Meanwhile, IWH executive director Lim Chen Herng said he expected the project to offer property products that will provide long-term recurring income for both parties.

Hao Yuan is known to pay exorbitant sums to acquire land for development purposes. Over the last two years, it emerged tops in several competitive bids for the purchase of land in Singapore, beating even the likes of MCL Land Ltd.

Hao Yuan is not the first China-based company to enter into a land transaction in Danga Bay.

In December 2012, IWH sold 55 acres to Hong Kong-listed Country Garden Holdings Ltd for RM900 million or RM376 psf.

Country Garden created a record of sorts by launching more than 9,000 high-end condominium units on the site. It said that more than 6,000 units have been taken up by buyers from mainland China.

IWH’s JV with Hao Yuan is its latest collaboration with local and foreign investors to develop the company’s flagship development at the Danga Bay waterfront.

In September 2011, the company signed a 80:20 JV with Zhouda Real Estate Group for an 18-acre tract in Medini North for RM158 million or RM199 psf.

The company also signed a JV agreement through Iskandar Investment Bhd (IIB) with Sunway Bhd’s subsidiary Sunway City Sdn Bhd to acquire 779.07 acres of land in Pendas, Nusajaya for RM412.7 million or RM12.16 psf.

IWH and Hao Yuan have appointed MCC Land Pte Ltd as project manager of the integrated mixed-use development.

MCC Land has been linked to several notable landmarks in Singapore including Universal Studios at Resorts World Sentosa and Keppel Distripark as well as a number of housing projects such as The Canopy and Canberra Residences.


This article first appeared in The Edge Financial Daily, on December 27, 2013.