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