WEST MALAYSIA PROPERTY NEWS
Iskandar Waterfront City Bhd Inks RM2.4 Billion Deal With Chinese Developer
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t a time when there is an increased level of cautiousness in the Johor property scene, a Chinese developer has inked an RM2.4 billion deal with Iskandar Waterfront City Bhd (IWCB) to acquire 128 acres of land, a value that underscores one of the highest land transactions in the Iskandar region to-date. A subsidiary of Shanghai-based state developer Greenland Holdings Group Ltd has established a joint venture (JV) with IWCB unit Southern Crest Development Sdn Bhd (SCD) to buy the land, which is mostly submerged, from IWCB for a sum of RM2.4 billion. The RM2.4 billion deal works out to about RM430 per sq ft, which property consultants said set the benchmark for property prices in that area as there had not been any transaction of that size in that area previously. Most previous transactions were at Danga Bay, which is at the Causeway and near the Second Link. The agreement is to acquire property and undertake the development and construction of a mixed development comprising commercial and residential components in Plentong, Johor Baru, via a special-purpose vehicle, Greenland Tebrau Sdn Bhd (GTSB).
Group Ltd, which, in turn, is a 60%-owned subsidiary of the Greenland group. KGV International Property Consultant executive director Samuel Tan said while more details were needed to determine if the deal was fair, it sent a strong signal to the investment market that Iskandar Malaysia was still a destination for property development in the long run. “Development by foreign players is not confined to the usual Danga Bay, Medini Iskandar Malaysia and Nusajaya. This is good, as it will result in a more balanced geographical growth within Iskandar Malaysia,” he added. It is learnt that IWCB chose the Greenland group, which is one of China’s biggest developers, because of its experience in building a city over a long term. Already, some 13 local and foreign companies are actively involved in developing Iskandar Waterfront City in Danga Bay with a cumulative gross development value of RM125 billion on the western corridor,
which stretches from Johor Baru to Nusajaya.
“I now want to develop the Eastern Corridor of Johor Baru, stretching from Tebrau Bay to Pasir Gudang,” said Johor Mentri Besar Datuk Seri Mohamed Khaled Nordin in a statement. Khaled envisions the Eastern Corridor to be South-East Asia’s new lifestyle destination, much like Australia’s Gold Coast. The urban development of Tebrau Waterfront City will span a 15-year period and will feature a snow world theme park, an opera house, a hospital specialising in Chinese traditional medicine and a school. “I welcome their long-term strategic interest to jointly transform Johor Baru into a modern international waterfront city and destination,” Khaled said. IWCB is a listed entity which is 47%-owned by Johor-based Iskandar
Waterfront Holdings Sdn Bhd (IWH). The Johor Government, via state investment arm KPRJ, has 40%. The JV would enable IWH to leverage on its Chinese partner’s strength in mixed commercial development, including high-end hotels and residential towers, to reshape its waterfront land in Danga Bay and Tebrau Bay. “We’ve undertaken urban development in over 80 cities throughout China. We’re keen to share the experience with IWH as our long-term JV partner and help transform Iskandar Malaysia into an international destination,” said Greenland group executive vicechairman Xu Jing. This is Greenland’s second investment in Iskandar Malaysia. In April 2014, Greenland signed an agreement with IWH to jointly develop 13.6 acres in Danga Bay for RM600 million, comprising an RM2.2 billion integrated mixedproperty project, which includes the recently launched Jade Palace luxury condominiums.
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and reclamation is not a new thing which instead has been done in a well-developed country such as Singapore and Holland. It was said by the Johor government referring to the controversial multibillion ringgit Forest City project, which will see reclamation of a huge part of Straits of Johor to create four man-made islands.
“Look at Singapore. They have also done massive land reclamation,” Menteri Besar Datuk Mohamed Khaled Nordin said. He also said the public should not be affected by negative views on the environmental impact, as reported in Star Property online. The project would now proceed as it had received approval from the
Department of Environment (DOE) on January 9. Mohamed Khaled said that all projects on reclaimed land in Johor had to meet stringent requirements and receive environmental impact assessment approval from the DOE.
Mohamed Khaled said the state government would ensure that the welfare of
and Taman Ungku Tun Aminah below market value as reported in The Star online.
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Scaled model of the master development plan of Iskandar Waterfront City
fishermen affected by the land reclamation in south Johor would be taken care of under the Fishermen’s Fund. Under a state ruling introduced last year, property developers involved in land reclamation within Iskandar Malaysia have to contribute to the fund.
House Buying Scam Uncovered
s the GST implementation is coming up pretty soon, there will be rush in purchasing property due to avoid the price hike.
In IWCB’s filing, it said its unit SCD would hold a 20% equity interest in GTSB, while Greenland Malaysia Real Estate Operator Sdn Bhd (GL) would hold the remaining 80%.
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Land Reclamation Is Not A New Thing
Sources said they would bring a prospective buyer to the house before collecting a deposit of between RM1,000 and RM2,500 in cash.
Together, Greenland and Johor state government-linked company IWCB will develop an RM3 billion new waterfront city on the land in Tebrau Bay.
GL is a wholly owned subsidiary of Greenland Hong Kong Investment
A project on reclaimed land in Johor
However, criminals are seeing this as an instant way to gain profit by offering to sell houses with very attractive price.
Recently, police has uncovered a house buying scam occurred n Johor after they arrested a couple, in their 30s who had allegedly cheated more than a dozen desperate house buyers. It is learnt that the couple had used popular property websites to post offers to sell their house in Perling
“Most of the time they do not bring the potential buyer into the house, claiming it was still occupied,” the sources said, adding that the victims only realised that they had been conned when they failed to contact the couple after the transaction.
Police have received numerous reports in Johor Baru North and Sri Alam. It is learnt that the couple were tracked down by officers from the state commercial crime unit and remanded. Investigations were being carried out under Section 420 of the Penal Code for cheating. The duo was also investigated for the similar cases elsewhere.
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