Recent Major Land Transactions in Iskandar Malaysia

PETALING JAYA: The price that tycoon Robert Kuok is paying for a piece of 5.06ha freehold land in Puteri Harbour, Johor, has become the talk of the town and even across the causeway, where the Singaporean media is hailing it as the “new price benchmark” in Nusajaya.

The views on the transaction are varied, though. While Singapore’s Business Times wrote that it was a record price for the Nusajaya land, substantiating it with the toppish RM334 per sq ft (psf) price paid by Kuok, there are others who are claiming that the billionaire is getting the land on the cheap.

To recap, Southern Marina Development Sdn Bhd (which is 70% owned by Kuok-related companies and the remaining by Khazanah Nasional Bhd) is paying RM182mil (or RM334 psf) to UEM Land Holdings Bhd for a 5.06ha parcel of land in Puteri Harbour.

This price works out to a significant 58% premium over what a consortium of corporate tycoons – Tan Sri Surin Upatkoon, Tan Sri Lee Oi Hian, Tan Sri Wan Azmi Wan Hamzah, and Wee Ee Chao – had paid for a 17.81ha plot also in Puteri Harbour. The vehicle the tycoons used, Liberty Bridge Sdn Bhd, paid UEM Land RM401mil, which works out to only RM211 psf.

Real estate investment consultant Gavin Tee Swee Heng told StarBiz that the land was considered a good purchase due to the vast potential in that prime area, but noted that it was definitely “not cheap.”

An analyst pointed out that the land had been appraised by property valuer Messrs Assetz Sdn Bhd at RM330 psf, so Kuok is paying 1.21% higher than the valued price, and it was justified by the fact that it was one of the rare parcels of land that was facing the marina.

However, to be noted is the fact that another recent transaction in Iskandar Malaysia was done at a higher price than what Kuok is paying. Last December, mainland Chinese firm Country Garden Holdings Co Ltd paid a total of RM900mil, or RM376 psf, for a 22.26ha land in Danga Bay.

The analyst explained that there was generally a price difference between land in Danga Bay and Puteri Harbour.

“Danga Bay sits in flagship zone A or Johor Baru, while Puteri Harbour is situated in flagship zone B under Nusajaya. Furthermore, Danga Bay is reclaimed land, and, hence, carries higher infrastructure cost,” said the analyst.

Tee is bullish on the development around Puteri Harbour.

“Puteri Harbour will be the number one play (in the region) in terms of class,” he said, adding that its value should be the highest in the vicinity due to the marina lifestyle conceptualised and target market which consisted of the international business and corporate population.

Meanwhile, concerns arose in the social media arena as some commentators claimed the land was cheap based on the projected development value.

Recall that the proposed development by Southern Marina would comprise a mix of residential and commercial development with a gross floor area of more than two million sq ft, at an estimated gross development value exceeding RM1bil.

Said Tee: “The land is definitely not considered cheap. There are many unforeseen costs that the developer might have to bear, as it takes time to develop the area.

“There is also a fair bit of holding cost that would incur over the period of time.”

Another consideration of the valuation of the land would be the plot ratio approved by the authorities, he added.

Besides that, he reckoned that there would definitely be some form of risk that developers had to take, as the development in Nusajaya was still considered at its initial stage and it would entail extra costs for them to hold until the area matured.

Kuok Group invest in the birthplace Johor, Puteri Harbour Iskandar

Kuok’s investment in Iskandar

THE return of Malaysia’s “prodigal son”, Robert Kuok to invest in Iskandar Malaysia, Johor.

To be sure, Iskandar has already reached a good level of success in the short seven years since its inception, having received RM111.37bil in cumulative committed investments as at the first quarter of this year.

Every big Malaysian property developer has made a concerted effort to get a project in Iskandar going.

But the entry of Kuok, Malaysia’s richest man and South-East Asia’s second richest is expected to spur international interest and catalyse more such investments.

Kuok has not actively invested locally since the 1990s. In fact, he was seen as one of those tycoons who were exiting Malaysia.

True, today his business empire via flagships Kuok Brothers Sdn Bhd and Kerry Properties Ltd are mostly outside Malaysia. It is no secret that Hong Kong has been 89-year old Kuok’s base for a very long time.

In 2006, when PPB Oil Palms Bhd was injected into Singapore-listed Wilmar International Ltd, it was seen as Kuok “cashing out” of the country. In 2009, Kuok who is estimated to be worth US$17.3bil according to the Bloomberg Billionaires Index, sold the sugar business that he founded in the 1950s the Malayan Sugar Manufacturing company to Felda Global Ventures Bhd.

Following this, his most notable flagship company here is the PPB Group Bhd and Shangri-La Hotels (M) Bhd.

Robert Kuok Robert Kuok

His return to Johor, his birthplace, dispels this notion. He was possibly waiting for the right time and place and what can be more exciting than putting money in a future metropolis that is set to rival Singapore and Hong Kong. Sources say that Kuok has been keen to pursue an investment in Iskandar for some time now.

Kuok’s faith in Iskandar is possibly reflected in that he was willing to pay top dollar or RM334 per sq ft for the two plots totalling 12.5 acres in Puteri Harbour in Nusajaya. This land deal, bought from UEM Land Holdings Bhd sets a new benchmark.

Early this year, UEM Land had sold land 3.5 times bigger than that bought by Kuok in Puteri Harbour to Liberty Bridge Sdn Bhd a consortium ownded by four tycoons from Malaysia and Singapore for RM211 per sq ft.

The Kuok group has teamed up with UEM Land’s major shareholder, Khazanah Nasional Bhd (in a 70:30 joint venture) to develop the place into a mixed residential and commercial development slated to have a gross development value of RM1bil.

Notably, the project will spin off construction jobs and employment opportunities in multiple disciplines for Johoreans.

It is also likely that the media-shy Kuok would be making more trips to Malaysia as work on this project progresses.

Kuok has done one more favour for Iskandar. He has reportedly influenced another foreign tycoon to invest there. It has been reported that Australian billionaire Lang Walker, who has developed properties around the world, has switched his focus to Iskandar following the hard sell made by Kuok. Walker is undertaking a US$1.3bil project in Senibong Cove, which he is jointly developing with Iskandar Waterfront Sdn Bhd, and this is his biggest bet outside Australia.

The two billionaires are partners in the US$1.4bil Collins Square redevelopment project in Melbourne. With Kuok’s help, Walker identified two areas in Johor Baru the Lido Beach and Senibong Cove but picked the latter to invest in.

Meanwhile, the other beneficiary from Kuok’s entry into Iskandar is Khazanah, who has a 30% stake in the venture. The sovereign fund will be able to leverage on the expertise that Kuok brings and enjoy its portion of profits from the project.

The Meridin@ Medini Private Preview Event confirmed on 11 May 2013,Persada Johor International Convetion Center

Mah Sing Group Bhd will be conducting a closed-door private preview of its The Meridin@Medini project in Iskandar Malaysia on May 11 at Hall 301, Persada Johor International Convention Centre (next to Puteri Pacific Hotel) from 9am to 5pm.

The closed-door event is by-invitation only, for those who register their interest with us before May 7.
via email or call at wilsonchia85@yahoo.com, 0177383624

So far, more than 4,000 people have registered their interest for Phase 1 of this project, Meridin Suites Residence.

Acquired in October 2012, the land for The Meridin@Medini is undergoing fast track development to meet immediate market demand as evidenced by the more than 4,000 registrants for Phase 1.

Layouts include one-bedroom to 4-bedroom units, with an option for balcony extensions. Built-up areas range from 521 sq ft to 1,643 sq ft, indicatively priced from RM387,000 to RM975,000 (about RM590 to RM740 per sq ft).

Each home is partially furnished with air-conditioning for all bedrooms and living room, built-in kitchen cabinet, cooker hood and hob, wardrobe for all bedrooms and water heater for bathrooms.

On sale are also 30 units of shops with built-up area ranging from 850 sq ft and indicatively priced from RM1,000 per sq ft.

Location near Legoland and Educity

Located a stone’s throw away from Legoland, The Meridin@Medini enjoys main road frontage of Persisiran Pantai JB Nusantara, the road leading to Johor’s new administrative center, Kota Iskandar, and abuts a 32 acre undulating green lung, says the developer.

The Meridin@Medini will have a “live, work, relax and rejuvenate” concept comprising Meridin Suites residences, Meridin Linx small office versatile offices (SoVo), Meridin Walk lifestyle retail and Meridin Exchange corporate towers.

The Meridin@Medini is only 10 minutes’ drive from the Tuas Singapore second link and 30 minutes from Senai Airport. The former means quick access to Jurong which the developer hopes will attract Singaporeans as investors.

Mah Sing’s senior general manager for the southern region Dr. Chai Kow Sin, “At a fraction of the price of a mass market condominium in neighboring Singapore, buyers of Meridin Suites will enjoy premium lifestyle features including concierge services, a facilities deck and high tech four tier security features. This will also appeal to young working couples, expatriates and empty nesters. In fact, Mah Sing will also provide for a wellness residential enclave which will be equipped with facilities that cater for continued care. This will be ideal for those seeking wellness care services in a well planned and secured community.”

The project is exempted from the minimum threshold of RM500,000 for foreign buyers, as well as the Bumiputera quota. This means that international buyers will also have the pick of choice units.

Dr Chai noted, “We foresee a lot of interest from parents whose children study in the various institutes of higher learning in EduCity@Iskandar like Newcastle Medical School, Marlborough College, Trust School and University of Southampton. Our project offers an attractive entry point, practical layouts, facilities and good security, giving them the peace of mind to let their children reside in The Meridin@Medini.”

Eligible companies in Medini that commence qualifying activities before 31 December 2015 also can register for IDR Status to enjoy various income tax exemption, withholding tax exemption for services and royalties, import duty and sales tax exemption as well as exemption from real property gains tax.

Iconic architecture with practical purpose

The Meridin@Medini has drawn interest for its clean lines. A broad and stable base tapers up to an elegant tip, creating an iconic curved façade which will be very distinctive due to the proposed height of the towers (proposed 36 storeys).

All units will have a south-west/north-east orientation.

The three towers hug a recreation and facilities deck on level 5, for which proposed facilities include an infinity swimming pool, Jacuzzi, children’s wading pool and playground, thematic landscaped garden, gymnasium, fitness par course, yoga deck, BBQ terrace, multipurpose hall, business centre equipped with Wi-Fi and launderette.

The closed-door event is by-invitation only, for those who register their interest with us before May 7.
via email or call at wilsonchia85@yahoo.com, +60177383624/+60167091205

Last few available units in SILC 7 !!!Hurry up!!

SILC 7 is opposite Nusajaya Square. row facing 6909 is Yong Nam Factory, row facing 6903 is new shop lots development by another developer (no details yet). Row 01-37 is facing main road.

End lot and corner lot are 4 storey, others are 3 storey. All corner and end lots will have lifts. For Corner lots, purchaser also has to buy the adjourning unit, thus it is a joint units purchase.

Free legal on SPA and stamp duty. Legal on loan and stamp duty is applicable and borne by purchaser. Usually Foreigners can borrow up to 80%.

Freehold. TOP/VP : end2014/beginning 2015.

Deposit is non refundable unless is loan rejection (must not be due to non submission of document).

The commercial podium of 3.60 acres will be a 3 star hotel with 250 rooms and service apartment.
SiLC Nusajaya

Developed to enrich your investment and enhance your business, SiLC Nusajaya – The Southern Industrial & Logistics Clusters – is envisioned to be a world-class managed; clean and green industrial park designed and planned to meet the current demand for environmentally sustainable development.

A flagship industrial development with a cluster-based approach, it features advanced, innovation-driven industries augmenting the value-chains of integrated ‘clean’ industrial clusters in three major areas – advanced technology, health & nutrition and logistics.

Location
SiLC Nusajaya is strategically located in the center of the emerging Asian economies and is within a 6 hour flight radius of the major Asian cities and markets. It is ideally located in the centre of the Asian consumer market of more than 3 billion people, bringing you closer to your new growth markets.

The only managed industrial park in the regional city of Nusajaya – the largest integrated development in Southeast Asia and the key driver of the Iskandar Development Region, SiLC Nusajaya is only 15 minutes from Singapore and 30 minutes from the Singapore Central Business District (CBD).

Connectivity
SiLC Nusajaya’s excellent connectivity network of 5 seaports and 2 international airports – all within a 50 minute drive – is unbeatable in Southeast Asia, giving you that competitive edge of a global reach from your doorstep. This augmented air, rail, road and sea connectivity provides complete logistics solutions for industries looking for expansion and/or re-location.

Expandability
A key factor when considering a location for your business operations is its ability to accommodate your business and operational growth. SiLC’s 1300 acres of contiguous development-ready land provides opportunities for long term operational expandability that was previously unavailable in the area.

Value
SiLC’s central regional economic location, unbeatable connectivity, and its expandability and growth opportunities provides the potential to create enhanced tangible and intangible shareholder value. Its high value to cost ratio makes it the ideal location for long term business operations.

Project introduction
Thematic industrial park based on the clustering concept capitalizing on proximity to two airports and four seaports.

Project objective
To be an industrial zone with a unique green industrial park concept that meets the current demand for environmentally sustainable development that complements the economy and quality of life.

Land Area
1,307.31 acres

Location
SiLC Nusajaya is located to the North-West of the Central Planning Area

Development Components
Value chains of integrated “clean” industrial clusters comprising 3 major areas:

Advanced Technologies i.e. nano-technology, bio-technology

Nutrition and Health

Value Added Logistics

Accessibility
SiLC Nusajaya is directly accessible from the Linkedua Highway via the Pulai Interchange, as well as via the B5 Road from the Gelang Patah Interchange. Development Period The overall development will be developed in phases spanning up to 10 years.

Development Progress
Development planning has been completed

Earthwork commenced June 2006
Nutrition and Health

Commenced marketing effort with Singapore-based advanced technology companies, as well as multinational companies in the advanced technology / nutrition and health / value-added logistics industries

Malaysia’s Premier Biotechnology Park and Ecosystem

Bio-XCell offers an environment conducive for the development and manufacturing of biologics, green chemicals and other solutions to heal, fuel and green the world.

Bio-XCell is a premier biotechnology park and ecosystem dedicated to healthcare and industrial biotechnology spanning 160 acres within the Iskandar region of Malaysia and is being developed by Malaysian Bio-XCell Sdn Bhd (a joint venture company formed between Malaysian Biotechnology Corporation and property developer UEM Land Berhad).

Iskandar Malaysia is the country’s foremost emerging economic zone. Strategically located at the crossroads of the East-West trade lanes, Iskandar Malaysia is only minutes away from Singapore and a few hours by air to the economic powerhouses of China and India, as well as other major, rapidly developing markets. This makes Bio-XCell the premier location for biotech companies to develop with direct access to booming Asian markets, proximity to abundant biomass for use as feedstock and renewable energy generation, and business friendly incentives. In addition, the modern and enriching environment will naturally attract the necessary talent pool.

Please contact this number or meail for more details of the available units and price.
0167091205 /97940550 /0177383624/wilsonchia85@yahoo.com

Where are the university located is Educity Iskandar? Here is the map for you

EduCity

Developing Talent in the Region
EduCity Iskandar Malaysia is a 600-acre fully integrated best-in-class education hub located in Nusajaya, comprising universities and institutes of higher education, academia-industry action and R&D centres, student accommodations, as well as recreational and sports facilities. A flagship education initiative by Iskandar Investment via its subsidiary, Education@Iskandar Sdn Bhd, this multi-varsity education hub is the first of its kind in Asia.

Students and staff in EduCity Iskandar Malaysia will enjoy an integrated campus experience with ready access to shared amenities including the International Student Village, which offer dynamic lifestyle and living options. This first block of apartments for student accommodations can house up to 600 students. In addition, a 14,000-seater stadium and sports complex housing sporting facilities of international tournament standards in EduCity Iskandar Malaysia will also be completed by 2012.

Primary and secondary trust schools will also be established in EduCity Iskandar Malaysia, aimed at nurturing young local minds to become Malaysia’s future leaders.

China’s Country Garden breaks ground in Malaysia with Mayland

China’s Country Garden breaks ground in Malaysia with Mayland

Regional president of the Malaysia Project for Country Garden Holdings Company Limited Kayson Yuen (KY) and managing director of Country Garden Properties (Malaysia) Sdn Bhd Chai Keng Wai (CKW) share with PropertyGuru their property development plans, ‘5 star living’ concept and community projects.
Q. What is your business background and why has Country Garden chosen to expand its development to Malaysia?

KY: Country Garden has had over 20 years’ experience in building townships. Over the years, we have created over 100 townships spread out in almost every main city in China .In our township, you enjoy not only high-quality products, perfect facilities, state-of-the-art landscapes and in addition to that we also wish to pioneer our clients to live a 5-star lifestyle.

As a top 10 developer in China, we also hope to venture in to another take-off through development, overseas market development seems to be the best opportunity and great challenge for us to undertake.
Country Garden (China) formed a professional research team which included our founder to conduct serious studies in several countries to identify the most suitable place for investment. In 2011, after considering all aspects for investment (location, environmental resources, cultural, etc.) we have made our decision on Malaysia because of its overall favourable conditions, investment environment as well as real estate development has great potential. Malaysia is our first station overseas.

Q. Why has Country Garden and Mayland decided to enter a joint venture in Malaysia?

KY: Even though Country Garden is well established in China and is listed in the Hong Kong Stock Market, we are new in Malaysia. To start anew is not easy. We have to adhere to our ‘fast development and sales’ business model; we want to adapt to and blend in the local market as soon as possible, so we figured that we can cooperate with an established local developer, after all a win-win co-operation would be the most efficient way.

Our JV with Mayland is honestly circumstantial. Our chairman, Mr Kwok Keung Yeung and Tan Sri David Chiu are good friends. Also, their development ideas correlate as both of our entities insist to build products which are brilliant, high quality with competitive prices and also focus to develop in high developing areas with a wonderful environment, convenient facilities and also great opportunity for capital appreciation.

CKW: In recent years, it is the trend and Malaysia society’s need to have an ideal township life bearing a conducive environment, which includes comprehensive facilities, high standard of safe and secured community, practical and efficient layout. Mayland has vast experience in local property industry and proud to say that with good track records and big crowd of home-buyers follower, we think we should expand even further and Country Garden Holdings is the correct partner for us.

Q. What aspects will each company bring to the table in this JV?

KY: We will mainly introduce our ‘5-star living’ model to Malaysia, which are: located in high-developing city areas, with diversified and high quality exotic products, large-scale and self-contained facilities, state-of-the-art landscapes and world-class property management.

The ‘5-star living’ model is successful and highly popular in China, we want to bring all the best elements of our township to Malaysia, and we will also seamlessly adapt to local needs to deliver optimised value to the Malaysian people, just as the tagline says: ‘5-Star Living For You’.

CKW: With almost 20 years of good experience in local property development, we are well versed with the local property market’s requirement and know what suits Malaysians’ needs. We have a wide range of social networking with local property industries as well as authorities that enable us not only to act as guide in this JV but also as a catalyst to ensure the success of the projects.

Q. What are the ‘5 Star living’ products that you plan to bring in to the Malaysian property market?

KY: Country Garden has their very own design institute and professional teams that constantly develop, evolve and innovate our products. Currently we have over 100 large-scale project designing experience.

The products that we intend to bring into Malaysia are based on our more popular designs, and have undergone some improvement upon taking in the local needs that were suggested by Mayland’s professional marketing team. We hope to create a comprehensible, adaptive and unique product to entice the local market.

Also we ensure that the products we bring in are diversified products designed to fulfil the varying needs of different customer bases. Some of the products are our highly popular mansion diamond villas, Spanish-style bungalows and modern-style super links and link houses.

The five star living products are:
a) Location – A strategic area out and away from the bustling city centre that is endowed with a variety of transportation hubs and facilities that embodies the convenience we want for our townships.
b) Product – We pride ourselves on our townships. From developing over 100 townships all over China, we have picked the crème of the crop for development in Malaysia. Incorporating our in house designs in terms of layout and functionality, we humanise the developments to meet the needs of the local scene.
c) Infrastructure & Landscape – Looking at the surroundings in Malaysia, needless to say that the landscape offers a brand new variety of ideas to us that will differ from the China landscapes. The five star brands isn’t limited to the quality of the houses we produce but it spans out to the townships we develop. We go out to the extent that we pick trees that are only of the same latitude and put them through eight different designing angles.
d) Security – The quality of property management in Malaysia still has room for improvement. We intend to bring in our expertise in the aspect and provide world-class standard to our development. We do not look at the profitability but with the objective to provide a conducive environment for our home-buyers.
e) Townships – ‘Happy Living’ is the culture we want to incorporate in the Malaysian market. In the hype of progress, most have neglected in even simple things like getting to know their neighbours. In our townships, we will conduct activities to bring this forgotten culture back in to Malaysia such as photo contests, hiking, family travels, golf and many more. Bonding between neighbours is strongly encouraged. Other than that, the housing concepts that we are looking at are resort homes that are nature inspired. Spa centres, sports centres, childcare centres, library and so much more just within the township vicinity.

The ‘5-star’ concept is aimed towards organically separating work and living by having townships outside the city centre.

Q. Currently Malaysia is focused on green space architectures. Will your upcoming developments incorporate to this cause?

CKW: In this context, Mayland plays a vital role. As part of the effort of increasing Earth’s sustainability, we are adopting GBI for our projects. We take into consideration the green concept for our projects, not only in reducing carbon emission but also encouraging the recycling of used construction materials hence reducing waste, promoting electricity generating by solar and water from existing stream, etc. For the site planning, we will try to maintain the existing earth terrain and stream so that there is no massive earthwork activity. Nevertheless, one of the important values of our projects is to always provide serene and green landscapes for each and every home with private garden that is designed by our JV partner landscape experts who have vast experience in the resort homes concept.

Q. What is your target market?

KY: Our target market shall be a mixture of local and foreign buyers such as Chinese, Japanese, Korean and even Middle East, but the majority would be local buyers. As for the China buyers, we have initiated some marketing and registration activities and the response has been overwhelming with over 2000 registrations.

Q. What is the five year growth plan of Country Garden/Mayland in Malaysia?

KC: While we are focused on our upcoming developments but we will also be simultaneously devoting ourselves to charity, social affairs and cross-cultural communication between Malaysia and China as this is the foundation that the mainland company stands on as well. In China, Country Garden is part of a charitable body called the Dream of The Phoenix. Through it Country Garden has funded free schooling opportunities for children that are academically gifted and from a poor background. In Malaysia, Country Garden has organised fund raisers for an elderly home in Semenyih and built a community hall for a primary school in Rawang.

These are just a few of the many community projects that we have planned. Soon after that, we are looking to buy more land to increase our land bank as our plans in Malaysia are for the long run.

CKW: For the long term plan of this JV entity, we will develop more good projects in Malaysia and therefore we look to increase our land bank. The current two projects’ locations, namely Semenyih and Rawang, are the upcoming hotspots in the Malaysian property market. We think Semenyih, which is in the southern region of Selangor, will be turning into “a hot cake” as we could see the growing of infrastructure and development in terms of commercial and social elements of the neighbouring areas. As for Northern Selangor like Rawang and Serendah, these areas will follow the same phenomenon and it’s a good thing that there is still a lot of sizable land, coupled with the green lung as the backdrop, all conducive for big township developments. Besides Selangor, we are also looking for land in Penang and Johor, which we feel are full of opportunities.

Country Garden, “China’s Well-Known Trademark” enterprise was established in 1992 and listed on the Hong Kong Stock Exchange in 2007. Country Garden is known as one of the top 10 developers in China. Last year, Forbes Asia listed Country Garden as one of the FAB 50 companies, with an estimated market value of USD 7.6bil. It is one of China’s leading integrated property developers, with businesses comprising of construction, installation, fitting, property development, property management, as well as hotel development and management.

Mayland Group is primarily engaged in property development in both residential,service apartment and commercial segments in Malaysia. The group is touted as the largest condominium and mid-range to high-end housing.Current property developments exceed 10,000 units in prime locations. Its highly-successful Plaza Damas integrated serviced suites and shopping complex, The Regalia @Jalan Sultan Ismail, The Elements @Ampang and more.