Kuok's investment in Iskandar a vote of confidence

THE return of Malaysia's “prodigal son”, Robert Kuok to invest in
Iskandar Malaysia, Johor is a vote of confidence in the country's first
economic corridor.
To be sure, Iskandar has already reached a
good level of success in the short seven years since its inception,
having received RM111.37bil in cumulative committed investments as at
the first quarter of this year.
Every big Malaysian property developer has made a concerted effort to get a project in Iskandar going.
But
the entry of Kuok, Malaysia's richest man and South-East Asia's second
richest is expected to spur international interest and catalyse more
such investments.
Kuok has not actively invested locally since the 1990s. In fact, he was seen as one of those tycoons who were exiting Malaysia.
True, today his business empire via flagships Kuok Brothers Sdn Bhd and Kerry Properties Ltd are mostly outside Malaysia. It is no secret that Hong Kong has been 89-year old Kuok's base for a very long time.
In 2006, when PPB Oil Palms Bhd was injected into Singapore-listed Wilmar International Ltd,
it was seen as Kuok “cashing out” of the country. In 2009, Kuok who is
estimated to be worth US$17.3bil according to the Bloomberg Billionaires
Index, sold the sugar business that he founded in the 1950s the Malayan
Sugar Manufacturing company to Felda Global Ventures Bhd.
Following this, his most notable flagship company here is the PPB Group Bhd and Shangri-La Hotels (M) Bhd.
His
return to Johor, his birthplace, dispels this notion. He was possibly
waiting for the right time and place and what can be more exciting than
putting money in a future metropolis that is set to rival Singapore and
Hong Kong. Sources say that Kuok has been keen to pursue an investment
in Iskandar for some time now.
Kuok's faith in Iskandar is
possibly reflected in that he was willing to pay top dollar or RM334 per
sq ft for the two plots totalling 12.5 acres in Puteri Harbour in
Nusajaya. This land deal, bought from UEM Land Holdings Bhd sets a new benchmark.
Early this year, UEM Land had sold land 3.5 times bigger than that bought by Kuok in Puteri Harbour to Liberty Bridge Sdn Bhd a consortium ownded by four tycoons from Malaysia and Singapore for RM211 per sq ft.
The Kuok group has teamed up with UEM Land's major shareholder, Khazanah Nasional Bhd
(in a 70:30 joint venture) to develop the place into a mixed
residential and commercial development slated to have a gross
development value of RM1bil.
Notably, the project will spin off construction jobs and employment opportunities in multiple disciplines for Johoreans.
It is also likely that the media-shy Kuok would be making more trips to Malaysia as work on this project progresses.
Kuok
has done one more favour for Iskandar. He has reportedly influenced
another foreign tycoon to invest there. It has been reported that
Australian billionaire Lang Walker, who has developed properties around
the world, has switched his focus to Iskandar following the hard sell
made by Kuok. Walker is undertaking a US$1.3bil project in Senibong
Cove, which he is jointly developing with Iskandar Waterfront Sdn Bhd, and this is his biggest bet outside Australia.
The
two billionaires are partners in the US$1.4bil Collins Square
redevelopment project in Melbourne. With Kuok's help, Walker identified
two areas in Johor Baru the Lido Beach and Senibong Cove but picked the
latter to invest in.
Meanwhile, the other beneficiary from Kuok's
entry into Iskandar is Khazanah, who has a 30% stake in the venture.
The sovereign fund will be able to leverage on the expertise that Kuok
brings and enjoy its portion of profits from the project.
Deputy news editor Gurmeet Kaur is making her third trip to Iskandar soon.