Update UEM Sunrise, KLK plan RM20b worth of Johor properties

by **Cals** Fri 07 Feb 2014, 15:47

Update UEM Sunrise, KLK plan RM20b worth of Johor properties

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Friday, 07 February 2014 15:18

KUALA LUMPUR (Feb 7): UEM Sunrise Bhd and Kuala Lumpur Kepong Bhd's (KLK) planned property projects in Johor will see an estimated gross development value of RM20 billion.

This takes into account the combined value of RM1.74 billion for the tracts which will be jointly developed by both firms, according to KLK CEO Tan Sri Lee Oi Hian.

Lee deems the company's joint venture (JV) with UEM Sunrise a "win-win situation".

“This is KLK’s foray into the Iskandar region. We are very happy to have this partnership with UEM Sunrise,” said Lee, noting UEM Sunrise's "rich experience" in township development.

“With a good partner like UEM Sunrise, we can combine our little experience with their rich history to develop an exuberant and thriving industrial township on that (Kulai Jaya) land (Fraser Metropolis).” he said.

Lee also said KLK was happy with the reciprocal rights to partner with UEM Sunrise on the Gerbang Nusajaya development in Johor Bahru.

UEM Sunrise Bhd and KLK is forming a JV to develop some 1,200 ha (3,000 acres) of freehold land in Johor.

According to UEM Sunrise's statement to the exchange today, the firm and KLK plan to develop 2,500 acres and 500 acres in Kulai Jaya and Johor Bahru respectively.

KLK, an oil palm plantation firm, owns the Kulai Jaya tract which is also known as Fraser land. UEM Sunrise is the owner of the Johor Bahru site, also known as the Gerbang land.

Both tracts are intended for mixed property development. In Kulai Jaya, UEM Sunrise said the project would comprise residential, commercial and industrial properties.

At the press conference, Lee said judging from the land size of the Fraser estate, “it will take a long period of time to develop the piece of land.”

“The development of Fraser Metropolis, measuring approximately 2,500 acres, will be led by UEM Sunrise, while KLK will lead the development of Gerbang Nusajaya, measuring approximately 500 acres.” he said.

Lee said Gerbang Nusajaya was set to become a hub for motorsports enthusiasts and affordable homes.

According to him, Fraser Metropolis will potentially be the next residential, commercial and industrial node within the Iskandar Malaysia region.

Meanwhile, Raymond Cheah, chief operating officer of UEM Sunrise said the property development projects were targeted at all segments of the market.

“We are looking at the entirety of it from affordable housing to the mid and high-end residential properties,” he said.

Cheah said the projects are targeted at local buyers, besides international customers from Singapore, Japan, India and Korea.

Meanwhile, UEM Sunrise executive director Datuk Izzaddin Idris said both developments would be launched probably within the next 18 months.

Izzadin said approval for the master plan requires time. “We are in no rush to launch the products,” he said.