PETALING JAYA: At a time when there is an increased level of cautiousness in the Johor property scene, a Chinese developer has inked an RM2.4bil 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 RM2.4bil.
The RM2.4bil 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).
Together, Greenland and Johor state government-linked company IWCB will develop an RM3bil new waterfront city on the land in Tebrau Bay.
The transaction comes amidst an environment where there are concerns of an oversupply of high-end condominiums in Johor. This has been evidenced by a lacklustre response from buyers for property launches in the Puteri Harbour area in the Iskandar Development region.
Iskandar Development is the authority overseeing the development of an area measuring 200,000ha in South Johor.
There are several companies undertaking the development, with UEM Sunrise Bhd being a key player. However, the recent poor take-up rate for the high-end condominium market was seen in a project at Tanjung Puteri Cove.
Apart from a vast hinterland waiting to be developed, more land is being reclaimed on the Straits of Johor near the Second Link, adding more supply of land for development.
This is particularly from the approval given to a JV between Country Garden Holdings Ltd and Kumpulan Prasarana Rakyat Johor (KPRJ) to reclaim and develop 1,368ha of land on the Straits of Johor to develop what is termed as the Forest City project that will be carried out on four man-made islands over a 30-year period.
In IWCB’s filing yesterday, 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%.
GL is a wholly owned subsidiary of Greenland Hong Kong Investment 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 RM125bil 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 vice-chairman 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 RM600mil, comprising an RM2.2bil integrated mixed-property project, which includes the recently launched Jade Palace luxury condominiums.
Source: http://www.thestar.com.my/
Showing posts with label Country Garden. Show all posts
Showing posts with label Country Garden. Show all posts
Wednesday, 21 January 2015
Monday, 29 September 2014
Developer insists Johor’s biggest reclamation project is above board
The developers of the Forest City project in Johor today insisted that it had followed all the procedures involved when taking part in the biggest land-reclamation project in the southern state of Malaysia.
The Forest City project will see four man-made islands being built in the waters of Tanjung Kupang between southwest Johor and northwest Singapore.
Country Garden Pacific View Sdn Bhd (CGPV) released a statement to clarify several facts while reaffirming its commitment to dialogue and engagement with those concerned.
"In January this year, CGPV received clearance from the Johor Department of Environment to commence reclamation works for the pilot phase."
"CGPV voluntarily ceased operations in June when we were informed that there were concerns about the Forest City project.
"We then voluntarily engaged an independent consultant to conduct a Detailed Environmental Impact Assessment (DEIA) and Hydraulic Study on the project."
CGPV said a preliminary report on the Forest City project was then submitted to the authorities, who subsequently granted the developer zoning approval.
"When the first draft of the DEIA and hydraulic study was compiled, several focus group discussions were held with local communities on September 14.
"The purpose of the focus group discussions was to obtained their feedback and concerns about the project to be included in the final DEIA report."
CGPV said another public dialogue was held on September 21 with more than 250 people turning up for the Q & A session with the company.
The developer said the final DEIA report was expected to be ready for submission in two weeks’ time, and will be publicly available.
The Malaysian Insider had reported on September 21 that public dialogue had been a fiery affair with villagers of Tanjung Kupang in Johor venting their anger.
The villagers argued that the biggest land-reclamation project in Johor would lead to the loss of their land and livelihood.
About 200 residents from about a dozen villages around Tanjung Kupang accused CGPV of bulldozing the project through their area without their knowledge.
NGOs, independent experts and political parties also turned up at the dialogue and questioned the developers on details which they claimed were lacking in the DEIA.
These included measures to reduce the damage to a field of sea grass that is an important nesting ground for the fish population which sits in the middle of the project.
Residents were also concerned with efforts to reduce backflow which could lead to flash floods in the area.
It was reported that the islands will have both residential and commercial lots and the project is expected to make a profit of nearly RM290 billion over the next 30 years for CGPV.
The gross development value (GDV) of the project will come up to RM600 billion.
CGPV is a 66-34% joint-venture between China’s Country Garden Holdings Ltd and Esplanade Danga 88 Sdn Bhd, whose main shareholder is the Sultan of Johor.
A state company, Kumpulan Prasarana Rakyat Johor (KPRJ), is also a partner in the project.
The controversial project entails 355ha along the Strait of Johor, close to the Second Link to Singapore and the Port of Tanjung Pelepas (PTP), and the reclamation of another 1,620ha.
The public hearing on September 21 is one of the terms of a DEIA on the project that CGP has to submit to the Johor government.
The project had initially been approved by the Johor Department of Environment in January, but work at the project’s site was halted in June after CGPV was instructed to submit a DEIA.
The project is being done off the coast of communities of fishermen and sleepy villages, who make a living from sea produce and agriculture in Tanjung Kupang.
The September 21 hearing in the packed Kampung Pok community hall had proceeded smoothly, until a consultant for the project started talking about a survey that was done among villagers.
Forest City project director Datuk Zamani Kasim said there was a focus group meeting with village representatives in June, where the community’s leaders had supported the project.
The company said it had surveyed 100 heads of households in the village. The survey showed 69.2% agreed to the project, while 71.3% thought it had a more positive impact.
CGPV said it had a focus group meeting with village heads and elders where they agreed to the project.
KPRJ executive vice-chairman Datuk Mohd Othman Yusof tried to calm the crowd and win them over with arguments that the people of Johor would benefit from the massive project.
But, residents would have none of it and shouted that they still rejected the project. – September 27, 2014.
Source: www.themalaysianinsider.com/malaysia/article/developer-insists-johors-biggest-reclamation-project-is-above-board
The Forest City project will see four man-made islands being built in the waters of Tanjung Kupang between southwest Johor and northwest Singapore.
Country Garden Pacific View Sdn Bhd (CGPV) released a statement to clarify several facts while reaffirming its commitment to dialogue and engagement with those concerned.
"In January this year, CGPV received clearance from the Johor Department of Environment to commence reclamation works for the pilot phase."
"CGPV voluntarily ceased operations in June when we were informed that there were concerns about the Forest City project.
"We then voluntarily engaged an independent consultant to conduct a Detailed Environmental Impact Assessment (DEIA) and Hydraulic Study on the project."
CGPV said a preliminary report on the Forest City project was then submitted to the authorities, who subsequently granted the developer zoning approval.
"When the first draft of the DEIA and hydraulic study was compiled, several focus group discussions were held with local communities on September 14.
"The purpose of the focus group discussions was to obtained their feedback and concerns about the project to be included in the final DEIA report."
CGPV said another public dialogue was held on September 21 with more than 250 people turning up for the Q & A session with the company.
The developer said the final DEIA report was expected to be ready for submission in two weeks’ time, and will be publicly available.
The Malaysian Insider had reported on September 21 that public dialogue had been a fiery affair with villagers of Tanjung Kupang in Johor venting their anger.
The villagers argued that the biggest land-reclamation project in Johor would lead to the loss of their land and livelihood.
About 200 residents from about a dozen villages around Tanjung Kupang accused CGPV of bulldozing the project through their area without their knowledge.
NGOs, independent experts and political parties also turned up at the dialogue and questioned the developers on details which they claimed were lacking in the DEIA.
These included measures to reduce the damage to a field of sea grass that is an important nesting ground for the fish population which sits in the middle of the project.
Residents were also concerned with efforts to reduce backflow which could lead to flash floods in the area.
It was reported that the islands will have both residential and commercial lots and the project is expected to make a profit of nearly RM290 billion over the next 30 years for CGPV.
The gross development value (GDV) of the project will come up to RM600 billion.
CGPV is a 66-34% joint-venture between China’s Country Garden Holdings Ltd and Esplanade Danga 88 Sdn Bhd, whose main shareholder is the Sultan of Johor.
A state company, Kumpulan Prasarana Rakyat Johor (KPRJ), is also a partner in the project.
The controversial project entails 355ha along the Strait of Johor, close to the Second Link to Singapore and the Port of Tanjung Pelepas (PTP), and the reclamation of another 1,620ha.
The public hearing on September 21 is one of the terms of a DEIA on the project that CGP has to submit to the Johor government.
The project had initially been approved by the Johor Department of Environment in January, but work at the project’s site was halted in June after CGPV was instructed to submit a DEIA.
The project is being done off the coast of communities of fishermen and sleepy villages, who make a living from sea produce and agriculture in Tanjung Kupang.
The September 21 hearing in the packed Kampung Pok community hall had proceeded smoothly, until a consultant for the project started talking about a survey that was done among villagers.
Forest City project director Datuk Zamani Kasim said there was a focus group meeting with village representatives in June, where the community’s leaders had supported the project.
The company said it had surveyed 100 heads of households in the village. The survey showed 69.2% agreed to the project, while 71.3% thought it had a more positive impact.
CGPV said it had a focus group meeting with village heads and elders where they agreed to the project.
KPRJ executive vice-chairman Datuk Mohd Othman Yusof tried to calm the crowd and win them over with arguments that the people of Johor would benefit from the massive project.
But, residents would have none of it and shouted that they still rejected the project. – September 27, 2014.
Source: www.themalaysianinsider.com/malaysia/article/developer-insists-johors-biggest-reclamation-project-is-above-board
Tuesday, 22 July 2014
Forest City the land reclamation iskandar project
Recently Forest City iskandar project at Tanjung Kupang gains a lot of attentions from local Malaysian and Singaporean. It is especially heated up when Singapore government request for environment research report regarding the land reclamation.
KPRJ stated that Forest City which is located at
Tanjung Kupang is a 30 years mixed integrated iskandar project plan, and the gross development value GDV amounted
to RM600 billion.
The Chairman of KPRJ Datuk Osman revealed in the press
conference, KPRJ suggests the Forest City development to taken up johor land
area of 5000 acres. However, it is believed that the actual johor land size for
Forest City when completed is around 4000 acres.
Osman pointed out that the iskandar project development
including residential housing, commercial zone, school and etc. It is expected
250,000 to 500,000 people will stay and work there in the Forest City.
For the current stage, Forest City is in the progress of land
reclamation for 49.3 hectare. It is expected to build a showroom as a center to
manage Forest City related development and information center showcase the
information related to Forest City.
Due to Singapore concern about the land reclamation which
may affect its border, environmental and ocean resources, Johor state environment
department already ordered to stop the land reclamation. The first stage of land
reclamation that expected to be completed in 18 months hence to be delayed.
Osman emphasize that the Forest City iskandar project so far
have undergoing related water conservancy research to ensure Forest City
project doesn’t affected the ocean system, or causing pollution to the
environment.
Forest City is a joint development between Country Garden and Esplanade Danga under the company name Country Garden Pacific View. Country Garden own 60% of the share while Esplanade Danga hold the rest 40% of Country Garden Pacific View. KPRJ is the shareholder of Esplanade Danga with 20% stake in it.
Wednesday, 23 April 2014
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.
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.
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| GreenLand Group |
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| GreenLand Group and IWH joint venture |
Sunday, 5 January 2014
Breaking record land prices in Iskandar Malaysia
Johor land prices received historical record high in transaction
yesterday. Johor Sultan Ibrahim sold 6 pieces of johor land within Special
Economic Zone Iskandar Malaysia with the total land coverage of 116 acres to
China Guang Zhou property developer R&F Properties with the total price of
RM4.5 billion ( Malaysia Dollar). The land price was transacted at RM890 per
square feet, breaking the record of land prices China property developer
Country Garden bought for the johor land at Danga Bay with RM363 per square
feet.
According to report submitted by R&F Properties to Hong Kong
Securities Exchange, it bought the johor land at Iskandar Malaysia with above land
prices after negotiation with Johor Sultan Ibrahim. Report said R&F
Properties will pay RM100 million as down payment, and the remaining payment
will be paid within following 3 years in four time method.
The Chairman of R&F Properties Mr Li said this is the
company first oversea land purchase. He mentioned that Malaysia has large
Chinese population and at the same time local government implementing policies
that attracting foreign property buyers, so it is very suitable for the company
first foray to oversea property market. “Malaysia has strong economic
fundamental and supported by huge human population, its property market has
strong potential growth.”
Since the launch of Special Economic Zone Iskandar Malaysia and
efforts of IRDA, Iskandar Malaysia has successfully attracted many real estate
investments in Iskandar development region which supported by surrounding
highly developed country like Singapore and strong economic growth and high
population country like Indonesia. Since the 2008 economic crisis, the economic
weigh highly and shifting from west to east and Iskandar Malaysia attractive
and investor friendly environment and policies allow Iskandar Malaysia become a
bright star within South East Asia region.
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| R&F Properties |
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