China property developer Greenland Group iskandar project at Danga Bay

Iskandar Malaysia received another real estate investment from China property developer. One of China’s largest state-owned property developers, Greenland Group had follows other China property developers’ footsteps to grab the market pie of hot Iskandar property market. China property developers since then have been one of the biggest players in the Iskandar Malaysia integrated development after Malaysia and Singapore.

Greenland Group has sealed a deal with government-linked company Iskandar Waterfrot Holding Sdn Bhd IWH to acquired a plot of prime waterfront land in Iskandar Malaysia for RM600 million for a mixed integrated development.

The acquired johor land size of 13.96 acres at the Danga Bay area which is near to its peer current prime property developer Country Garden is expected to have gross development value GDV of RM2.2 billion. The successful of Country Garden maiden foray into Danga Bay has attracted many China property developers who wish to expand their footprints overseas after tightened restrictions on their own country. Media has reported that Country Garden achieved targeted property sales of RM10 billion with over 6000 units of new launch condo sold within 2 months after the new project launch at August 2013.

The land prices Greenland Group bought is the second highest in the record johor land sale transactions in Iskandar Malaysia at RM984.00 per square feet - just below the record RM998.00 per square feet that Hao Yuan Pte Ltd, a Singapore-based paid for 15 ha at Danga Bay last December. Sin-Hao Yuan Land aims to build the Malaysia tallest tower in Danga Bay as part of its iskandar project in Iskandar Malaysia.

A delegation from Greenland Group had visited Malaysia in February to explore real estate investment opportunities. Zhang Yuliang, Chairman of Greenland Group during his February visit said  that Malaysia has enjoy stable economic growth, high population demand, well connectivity within the region and Iskandar Malaysia is located at strategic location which near to Singapore separated by a causeway. These factors are the reasons for Greenland Group to invest at the Iskandar Malaysia.

Greenland Group was ranked 359 in the Fortune Global 500 company chart last year and listed as one of the top 10 property developers in China by Forbes with an estimated market value of US$7.6 billion (RM24.63 billion). Greenland Group has been on a buying spree in recent years with acquisitions of large scale real estate projects in New York, Los Angeles, Sydney, London and South Korea. The company is the builder of the 131-floor world’s tallest residential tower in Wuhan, China, and currently constructing another iconic 88-storey tower in Nanjing, potentially the seventh tallest building in the world.

IWH, a government-linked company, is the master developer of some 1,620ha of waterfront land stretching along the coastal line of Flagship A, Flagship B and Flagship C, which is the premium johor land area of Iskandar Malaysia.

Greenland Group will form joint venture vehicle with IWH for the GDV of RM2.2 billion iskandar project.

IWH said it plans to leverage on Greenland’s forte in integrated developments, including high-end hotels and residential towers, to help transform Danga Bay into an integrated international waterfront city.

“We believe the Greenland Group will pave the way for more China state-owned companies to invest in Iskandar Malaysia and our extensive waterfront johor land in Johor Baru,” said IWH.

So far, 16 local and foreign companies have committed to develop properties in joint venture with IWH with a cumulative GDV of RM125 billion. At least four other major China property developer are also negotiating with IWH for mixed integrated development featuring exclusive waterfront properties there.

GreenLand Group

GreenLand Group and IWH joint venture

IWH

Puteri Cove Residences at Puteri Harbour

Puteri Cove Residences was launched for sale to the public and was met with overwhelming response. Big crowds of home buyers flocked to sales galleries located in Singapore Toa Payoh and Puteri Harbour in Nusajaya when Pacific Star and DB2 announced the new property launch .

Highly anticipated by property buyers and industry players, large crowds formed at the Singapore marketing agent ERA headquarters at Toa Payoh in the early morning to queue for the sale via ballot process, which took place in the late morning Saturday.

Puteri Cove Residences by Singapore developers Pacific Star and DB2 has sold 83% of 450 units released to the public within 1 week of its new property launch. The home buyers represented over 20 nationalities from the United States of America, Australia, Britain, Germany, France, Canada, China, Hong Kong, Taiwan, Japan, Korea, India, Indonesia, Malaysia and Singapore. However majority of the home buyers are from Singapore, Malaysia and Indonesia.

To-date, property prices on units offered for sale have been sold at prices ranging from RM1,180 psf to RM1,580 psf. The outstanding results were above the property developer expectations and the property developer credits the winning mix of unique characteristics of the new property launch iskandar project for its popularity amongst property buyers:-

•     Freehold waterfront with private marina
•     Stunning views of sea or marina and Singapore for every apartment
•     Mixed-use project ie. Live, Work, Leisure, Shopping, Entertainment, Dining
•     Luxury finishes and fixtures
•     Prime location and within close proximity to Puteri Harbour International Ferry Terminal
•     Kota Iskandar, Theme Parks and EduCity are within walking distances           
•     No restrictions to foreigner property buyers

Comment on the exceptional property sales results, Glen Chan, Chief Operating Officer, Pacific Star Group and President, Pacific Star Development, “With a winning combination of prime waterfront location and reasonable house prices in Iskandar Malaysia, the strong property sales attests to the attraction and saleability of our iskandar project. We have over 20 nationalities of property buyers in Puteri Cove Residences, which validates our original intent of designing and conceptualizing a luxury mixed-use new housing developments that appeals to a cast of sophisticated and experienced international property buyers. I am confident that Puteri Cove Residences is eminently positioned for capital appreciation because of its international appeal, much like prime property in global cities like London, Hong Kong and Singapore. We are also encouraged by this strong showing of confidence by our home buyers and thus believe our buyers are looking at the long term growth potential in the Iskandar Development Region, particularly when co-operation and collaboration between the governments of Singapore and Malaysia in the Iskandar Development Region are expected to increase in the near future”.

Recently, both Prime Minister of Singapore and Malaysia are discussing about Singapore-Kuala Lumpur High Speed Rail constructions and Rapid Transit System connectivity. This has been translated to firm evidence of closer economic activities and collaboration between both governments. The successful constructions of both connectivity will definitely form the model of Hong Kong-ShenZhen in Singapore-Iskandar Malaysia, spur the drastic economic growth in the Iskandar Development Region supplemented by Johor State government’s investor friendly and attractive incentives policies to investors within Special Economic Zone Iskandar Malaysia.

Puteri Cove Residences

The third bridge Friendship bridge for Malaysia and Singapore

Recently Malaysia Prime Minister Datuk Seri Najib Razak's has proposed to counterpart neighbor Singapore to build “Friendship Bridge”. The proposed plan to build a Malaysia-Singapore “Friendship Bridge” has received the thumbs up from both sides as it will strengthen close ties between the two countries.

Prime Minister Datuk Seri Najib Razak proposed the Friendship Bridge at a press conference with his Singapore counterpart Lee Hsien Loong after the two-day annual Malaysia-Singapore Leaders' Retreat in Putrajaya last week. Community leaders said the proposed friendship bridge would improve road connectivity and serve as a symbol of growing friendship between the two nations.

Prime Minister Datuk Seri Najib said no deadline had been set for the commencement of the friendship bridge project for now. Once the friendship bridge is built, it would be the catalyst for rapid growth in southern Johor especially Iskandar Malaysia and meet Singapore’s desire to increase its investments in Malaysia.

Prime Minister Datuk Seri Najib mentioned that Singapore is keen on having the third bridge and it is something which we (Malaysia and Singapore) will pursue. Najib, who is also finance minister, said Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop had been asked to jointly conduct a feasibility study on the third bridge project with his Singaporean counterpart. They are expected to appoint a consultant and determine the projected cost. He said the cost of constructing the friendship bridge would be shared equally by the two countries.

For the moment, there are total 2 traffic passages to link Malaysia state Johor to Singapore; one is Johor Bahru-Woodland Causeway and another one is Second Link at Gelang Patah-Tuas. Both the Causeway and Second Link are unable to meet growing traffics in recent years as both country economic activities growing further. Last year, causeway traffic hits more than 100 million people to travel between Johor and Singapore, and it cause heavy causeway traffic jam at the checkpoint. Every people spend at least 1 hours and above to go through the causeway traffic to the checkpoint. The third bridge Friendship Bridge will definitely ease the causeway traffic flow at the Causeway and the Second Link.

The proposed Friendship Bridge is expected to further spur the economic growth of Iskandar Malaysia which encompasses south Johor. Up to date, Singapore is the biggest investor in the Iskandar Malaysia Special Economic Zone. If the proposed third bridge goes as planned, Johor will be easily accessed via land from Singapore and vice-versa through three locations. It will enhance the connectivity and bring bilateral economic benefits for both countries in the long term.

Johor - Singapore Causeway

Tuas - Gelang Patah Second Link