GAIM seeks to invest more in Iskandar

Berinda Group chief executive officer and Tanjung Bintang group managing director Frank Goon Swee Kheong (right) briefing Johor Baru mayor Jaafar Awang (centre) and Charlie Taka on the Molek Pine 3 Tower.

The Macau firm has just acquired two condo blocks there for RM200mil

JOHOR BARU: Global Asia Investment (Macau) Ltd (GAIM) is looking to invest in more property projects in Iskandar Malaysia following its initial foray into Johor Baru market.

Chief executive officer Charlie Taka said the prospects in Iskandar Malaysia were good and the company wanted to benefit from long-term growth of Malaysia's first economic growth corridor.

Headquartered in Macau, GAIM is an asset-building consulting company with 10,000 members. It assists its clients, who are mostly Japanese, in investing overseas.

“Iskandar's close proximity to Singapore and its strategic location in the region is the major selling point to attract investors from all over the world,'' Taka told StarBiz at the ground-breaking ceremony of Molek Pine Tower 3 project here recently.

He said like Chinas' Shenzhen, which benefitted from the economic spillover of Hong Kong and Macau, Iskandar would benefit from Singapore's position as an international trade and financial centre.

He expects Iskandar to be fully developed in 10 years although Iskandar Regional Development Authority, under its Comprehensive Development Plan, has set a target for the economic corridor to become an international metropolis in 2025.

Meanwhile, GAIM has purchased the two condominium blocks at Molek Pine Tower 3 from Tanjung Bintang Sdn Bhd for RM200mil. The blocks would be used for its “Malaysia My Second Home” programme for its Japanese clients.

The project comprises a 28-storey tower block with 212 units and a six-storey block with 36 units on a 2.42ha site in Taman Molek.

The units will have built-up areas of 1,300 to 2,300 sq ft. The condo, with selling price from RM500,000, is expected to be completed in two years.

It is being developed by Tanjung Bintang, a unit of the Berinda Group, which in turn is a property development arm of the Kuok Group. Taman Molek was launched in 1990 and now has about 5,000 residential and commercial units.

“With European and the US economies still have a long way to recover and Japan's economy not in a good shape either, we are focusing on China and Asean countries for investments,'' said Taka.

He said GAIM would look at several options when investing in Iskandar including joint ventures with local partners, buying properties en bloc and acquiring stakes in companies.

Taka said apart from Iskandar, the company also had property investments in Kuala Lumpur and Penang.

GAIM, which has a revolving fund of RM500mil, has similar investments in Canada, China, Cambodia, Europe, Hong Kong, Japan, Macau, Thailand, the United States and the Philippines.

By The Star

Challenging times ahead for Iskandar

JOHOR BARU: Iskandar Regional Development Authority (Irda) chief executive officer Ismail Ibrahim says attracting new investments to Iskandar Malaysia is going to get tougher and more challenging.

He said although the country's first economic growth corridor was making significant progress and moving in the right direction, albeit uncertainties in the global economy, Iskandar could not afford to rest on its laurel.

“The intensity of the competition is becoming greater and we have to prove our sceptics wrong that Iskandar is indeed taking shape as planned,'' Ismail said in an interview with StarBiz.

He said the challenge was not only in attracting new investments to Iskandar, but also receiving financial support from the Government for infrastructure development projects.


Ismail Ibrahim … ‘We have to prove our sceptics wrong, that Iskandar is indeed taking shape as planned.’

Under the Comprehensive Development Plan 20062025, Iskandar is set to transform into a metropolis of international standing.

Iskandar, launched on Nov 4, 2006, is located in the southern most part of Johor and spans over 2,217 sq km. It is three times bigger than Singapore and has five flagship development zones JB City Centre, Nusajaya, Eastern Gate Development, Western Gate Development and Senai-Skudai.

The corridor has attracted investments totalling RM67.68bil up to November last year. A total of RM39.42bil, or 58%, of the total investment was from domestic investors and the balance from foreign investors.

Of the overall investment received, RM6.28bil was from the public sector; RM14.45bil went to tourism, utilities and others; RM20.25bil for properties; and RM26.38bil for the manufacturing sector.

During the same period, RM27.61bil or 40.8% of the total committed investments have been spent on development projects in the region.

Ismail said Irda would continue to work closely with government agencies like Malaysian Industrial Development Authority and Malaysia External Trade Development as well as foreign missions to promote Iskandar.

He said Irda also had a good working relationship with the Johor State Investment Centre (JSIC) although Irda's coverage was limited to Iskandar only, while JSIC covered the entire state.

Irda is the regulatory body mandated to plan, promote and facilitate the development of Iskandar. Prime Minister Datuk Seri Najib Razak and Johor Mentri Besar Datuk Abdul Ghani Othman are the co-chairmen.

“We are mindful of the growing Asia-Pacific region and we are coming out with programes to attract more investments from China, India, Indonesia and Singapore,'' Ismail said.

He said besides these countries, Irda would continue to woo investors from Europe, the United States and the Middle East, and would likely to extend its reach to Brazil, Russia and South Africa.

Ismail said although the economies of Europe and the United States were still in the doldrums, Irda believed that they still offered good investment opportunities for Iskandar as not everyone there was affected by the downturn.

He said Iskandar was now in the second phase of its road map which focused mainly on attracting new investments and the completion of phase-one projects.

Ismail said Irda would have more outreach programmes this year with the private sector, which would not be limited to meeting them as groups in seminars or conferences, but would be on one-to-one basis.

“We want to engage them better and intensively so as to share our plans for the private sector in Iskandar and vice versa,'' he said.

Ismail said the private sector stakeholders included property developers, investors, chambers of commerce, small and medium-scale enterprises and land owners.

On why the Government decided to allocate an additional RM600mil for Iskandar in November from the RM339mil announced by Najib in Budget 2011, he said the Government must have its own reasons for that.

Ismail said the bulk of the allocation would be spent this year on ongoing projects like the New Coastal Highway, Iskandar Malaysia public housing project and river cleaning works.

“We believe (the extra allocation) has got to do with our timely delivery of our infrastructure projects and the commitment shown by us and the new projects already in the pipeline,'' he said.

By The Star

SP Setia to expand Johor landbank

KUALA LUMPUR: SP Setia Bhd, which has established a strong foothold in Johor, continues to expand its landbank in the state by acquiring a land from Kenyalang Property Development Sdn Bhd for RM125.8 mil.

In a filing to Bursa Malaysia yesterday, SP Setia said its subsidiary, Setia Indah Sdn Bhd, had entered into an agreement with Kenyalang for the acquisition, which is expected to conclude during the financial year ending Oct 31, 2011. It plans to develop a mixed residential development located in the Tebrau corridor.

By Bernama

Setia Indah to acquire 106ha in Johor Baru

SP SETIA Bhd’s wholly-owned unit Setia Indah Sdn Bhd has entered into a conditional sale and purchase agreement with Kenyalang Property Development Sdn Bhd to buy 106ha in Johor Baru, Johor, for RM125.8 million.

It told Bursa Malaysia yesterday that it intends to develop a mixed residential development project on the land.

By Business Times

Land re-pricing to boost UEM Land, Tebrau

UEM Land Bhd, Tebrau Teguh Bhd and Mulpha International Bhd are among Malaysian property companies that will benefit from a “re-pricing” of the land and property values in the southern Johor state, according to RHB Research Institute Sdn Bhd.

“The re-rating of the Johor property play started following the negotiation of the land swap deal between Singapore and Malaysia,” RHB said.

“The re-rating process was further accelerated by the introduction of the Government’s economic transformation program.”

By Bloomberg

Sunway City buys land in Johor

PETALING JAYA: Sunway City Bhd is acquiring 64.63 acres near Johor Baru from Bukit Lenang Development Sdn Bhd for RM134.52mil.

The company said in an announcement that a shareholders' agreement was also signed for a proposed joint venture via Asli Budimas Sdn Bhd (a subsidiary of Sunway City), for the development of the land.

By The Star

Nusajaya to develop RM670m project

PETALING JAYA: Nusajaya Consolidated Sdn Bhd (NCSB), a 50:50 joint venture between UEM Land Bhd and United Malayan Land Bhd (UMLand), will develop 6.7 acres in Nusajaya, Johor, into a mixed development project with a gross development value of RM670mil.

UMLand said in a statement to Bursa Malaysia that NCSB yesterday signed an agreement with Bandar Nusajaya Development Sdn Bhd to acquire the freehold land in Nusajaya for RM49.6mil in cash.

The proposed development, to comprise commercial, residential and retail components, will be developed over four years and is expected to yield a gross profit of RM160mil.

It is located in Puteri Harbour, an integrated waterfront and marina development spanning 278.42ha within Nusajaya and Iskandar Malaysia.

At present, NCSB is developing boutique waterfront apartments in Puteri Harbour scheduled for launch next year.

Following the purchase of 0.89ha in November 2009, NCSB has now exercised its option to buy the second parcel.

UMLand said the land and development costs would be financed through internally generated funds and/or bank borrowings.

By The Star

UEM Land in deal with Nusajaya

UEM Land Bhd, the master developer of Nusajaya, signed a sale and purchase agreement valued at RM49.6 million with Nusajaya Consolidated Sdn Bhd, as the latter has exercised its option to buy a second parcel, measuring 2.71ha in Puteri Harbour.

Nusajaya Consolidated, a 50:50 joint venture company of UEM Land and United Malayan Land Bhd, was formed in October 2008 to develop waterfront properties in Puteri Harbour.

It purchased a 0.89ha land in November last year, with the option to purchase a second parcel.

Nusajaya Consolidated is currently developing boutique waterfront apartments, scheduled to be launched in 2011.

By Business Times

UM Land gains on Johor property plan

United Malayan Land Bhd (UM land), a property developer, gained 1.2 per cent to RM1.76, set for its highest close since November 24.

The company said its joint venture, Nusajaya Consolidated Sdn Bhd, has exercised an option to buy a 6.7-acre land in Puteri Harbour in Johor state for RM49.6 million.

The joint venture plans an office, residential and retail project on the land worth RM670 million in gross development value, according to a company statement.

By Bloomberg

UEM Land in RM50m pact with Nusajaya

Nusajaya master developer UEM Land Bhd has signed a sale and purchase (S&P) agreement valued at RM49.6 million with Nusajaya Consolidated Sdn Bhd (NCSB).

NCSB is a 50:50 joint venture company of UEM Land and United Malayan Land (UM Land).

"Following the purchase of 2.204 acres in November 2009, NCSB has now exercised its option to purchase a second parcel, measuring 6.698 acres in Puteri Harbour.

"The acquisition was pursuant to the exercise of the option given to NCSB to purchase Parcel Commercial South 3 (Parcel CS3) at Puteri Harbour," UEM Land said in a statement today.

Parcel CS3 is located within the Commercial South development of Puteri Harbour.

UEM Land managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim said the exercise of the option and the S&P agreement reaffirmed UM Land's commitment and belief towards the overall development potential of Puteri Harbour.

"With UM Land's involvement in the development, it will contribute to realising our vision to develop Puteri Harbour as a premier waterfront destination for the region," he said.

By Bernama

UEM Land, UMLand to jointly develop RM670m project in Puteri Harbour

KUALA LUMPUR: UEM Land Bhd and UNITED MALAYAN LAND BHD (UMLand) are teaming up to develop the second mixed development project in Puteri Harbour with an estimated gross development value of RM670 million while gross development profit is estimated at RM160 million.

UEM Land, the master developer of Nusajaya, had on Thursday, Dec 23 signed a sale and purchase agreement valued at RM49.6 million with Nusajaya Consolidated Sdn Bhd (NCSB), a 50:50 JV of UEM Land and UMLand to acquire the parcel of land -- Parcel Commercial South 3 (Parcel CS3) -- in Puteri Harbour.

The Parcel CS3 is within the Commercial South development of Puteri Harbour. Commercial South is envisioned to be a business and residential hub with high towers overlooking the marinas of Puteri Harbour.

UEM Land and UMLand said their strategy was to target regional companies to locate their offices there while for the condominiums, their plan was to attract international investors to be the main buyers for the units.

UEM Land managing director Datuk Wan Abdullah Wan Ibrahim said the company was excited with the exercise of the option and the SPA as it reaffirmed UMLand’s commitment in the overall development potential of Puteri Harbour.

“We have enjoyed a strong working relationship with UMLand in the development of Parcel A3 and are pleased with the progress achieved for Parcel A3, which we hope to introduce to the market in 2011.

“With UMLand’s involvement in the development, it will contribute to realising our vision to develop Puteri Harbour as a premier waterfront destination for the region,” Wan Abdullah said.

Presently, NCSB is developing boutique waterfront apartments scheduled to be launched in 2011.

UMLand group chief executive officer Pee Tong Lim said with development activities picking up in Nusajaya, the joint project was timely and augured well with UMLand’s business plans and strategies.

“This development is expected to contribute to UMLand’s group earnings from financial year 2012 onwards,” said Pee.

By The EDGE Malaysia

RM688m mixed project in Iskandar on drawing board

WCT Bhd, a construction and property outfit, will undertake a mixed commercial project in Johor next year featuring retail, offices and apartment blocks.

The RM688 million project, located in Medini, in Iskandar Malaysia, will be WCT's second development in Johor after 1Medini Residences.

1Medini comprising 1,332 condominium units worth RM600 million, will be launched by June next year, said WCT general manager for sales and marketing Stewart Tew.

Tew said WCT is bullish on Johor market, hence it will buy more land there when the opportunity arises.
"We are venturing heavily into Johor. There has been a lot of catalyst development in Medini like Legoland Malaysia and Newcastle University Medical Malaysia.

"Iskandar Malaysia is close to Singapore, a high networth business district. So we see potential to grow in the south," he said yesterday in Kuala Lumpur after a signing ceremony between WCT's Platinum Meadow Sdn Bhd and Global Capital & Development (GCD).

GCD, a Mubadala-led consortium, is the concession holder tasked with the development of Medini, comprising lifestyle and leisure cluster, Medini business district and a cultural centre.

WCT is buying 4.1ha from GCD for its commercial project.

GCD chief executive Keith Martin said it expects a new wave of development in Medini next year.

Martin said GCD is talking to potential investors in various sectors in Asia Pacific to invest in Medini.

GCD is conducting a feasibility study to develop Plaza Medini, a two million sq ft commercial mixed used project, featuring offices, retail, serviced apartments and hospitality venues. Key plans include setting up a US$150 million (RM469.50 million) film and television production facility.

Medini is expected to generate over US$20 billion (RM69.6 billion) in revenue over a 15 to 20 year period.

GCD is represented by investors from Malaysia like Iskandar Development Bhd and Mubadala, the Abu Dhabi government investment company.

By Business Times

Global Cap, WCT unit in RM688m pact

Global Capital & Development Sdn Bhd (GCD) has signed an agreement with Platinum Meadow Sdn Bhd, a wholly-owned unit of WCT Bhd, for a RM688 million commercial development in the Medini Business District at Iskandar Malaysia, Johor.

GCD chief executive officer, Keith Martin, said the 4.12-hectare development would add to the range of commercial projects already scheduled for development in the business district.

"The key plans include a media village cluster development to support Pinewood Iskandar Malaysia Studios, a US$150 million (US$1=RM3.10) film and television production facility project, which is expected to create over 3,000 jobs.

"The project is located close to the business district," he told a media briefing after signing the agreement with Platinum Meadow here today. Martin said GCD would also take a larger role in the success of Medini.

"Currently, we are conducting a feasibility study to develop Plaza Medini, a two million sq ft commercial mixed project consisting of office space, hospitality venues, service apartments and retail outlets," he said.

Meanwhile, WCT Land Sdn Bhd’s general manager (sales and marketing), Stewart Tew, said the RM688 million commercial development in Medini Business District was its second venture in Iskandar Malaysia.

"WCT’s latest investment adds to its growing presence in Medini, building on a joint venture deal with Iskandar Investment Bhd last year to develop 1Medini, the city's first residential development located in Medini North.

"It has a gross development value of RM600 million," he said.
Tew said One Medini Sdn Bhd would develop the project (1Medini), a 70:30 per cent joint venture between WCT’s unit, WCT Land and Medini Land Sdn Bhd a subsidiary of Iskandar Investment and was scheduled for completion by 2015.

The 142ha Medini Business District is located next to Medini North, the city’s lifestyle, retail and tourism hub as well as connected to Medini South, a high-end waterfront residential and leisure community.

By Bernama

KSL City shopping mall set for Sunday opening

Ku Hwa Seng posing with a model of KSL City, which includes two hotel blocks and two 33- storey apartment blocks.

JOHOR BARU: KSL Holdings Bhd will be opening part of its KSL City project development the four-storey retail complex on Dec 12.

Executive director Ku Hwa Seng said the retail complex would be Johor's largest shopping mall with a gross floor area of 880,000 sq ft and 2,800 indoor parking lots.

He said the podium block had 420 retail shops, 50 food and beverage outlets, and eight cineplexes, including two 3D screens.

Ku said the atrium of the retail complex would also house Johor's largest indoor electronic billboard made up of nine 62-inch flat-screen LCD televisions.

Work on other components of the project is progressing well and they are expected to be ready by the end of next year, he said in an interview with StarBiz.

Dubbed one of the biggest commercial complexes in the southern region, the RM500mil KSL City project also houses hotel and apartment blocks.

The project is also the first such development in Johor that combines retail, hospitality and high-rise residential living, similar to those found in Kuala Lumpur and Singapore.

The 1,000-room KSL Resorts Hotel comprises two 20-storey blocks while D'Esplanade Residence @ KSL City offers 346 units two 33-storey apartments blocks.

Glass Tower I and II offer 242 and 104 units respectively with built-up areas ranging from 93.83 to 929.03 sq m that are priced from RM500,000 each.

Our apartments have attracted Malaysians as well as buyers from Hong Kong and Singapore. With the influx of foreign investors to Iskandar Malaysia, we believe they will also snap up our units, said Ku.

He said the project's location in Century Gardens less than 3km from the Johor Baru city centre and the Johor Baru Customs, Immigration and Quarantine complex in Bukit Chagar would be a strong selling point to buyers.

Ku said KSL was confident that the hotel would do well, considering most hotels in the Johor Baru central business district were recording almost 90% occupancy rate.

He said Johor also benefited from Singapore's Sentosa World Resorts and Marina Sands Resorts as Malaysians planning to visit the resorts would probably stay in Johor Baru as the hotel rates in the republic were too costly for the average visitor.

Presently, Singapore is facing a shortage of hotel rooms and the average room rates of S$300 could further increase to S$500 by the time KSL Hotel is completed.

We are planning to have a tie-up with the two Singapore casino operators to provide shuttle bus services from KSL City to the two resorts, said Ku.

By The Star

Daiman to expand beyond Johor

JOHOR BARU: Daiman Development Bhd plans to expand to other parts of Malaysia after having been in the Johor property market for almost 40 years.

General manager Siah Chin Leong said the company had been looking for land in the Klang Valley for the past few years.

He said the areas that it had identified included Cheras, Kajang and Shah Alam but the land price there was too high and some of the land offered was not strategically located for housing projects.

We'll continue with our search. Sooner or later, we will find suitable land, Siah told StarBiz after the company's AGM recently.

He said apart from the Klang Valley, Daiman might also venture into Malacca, Negri Sembilan and Penang.

The company would even consider going into Singapore as demand for private properties there was still good due to the influx of wealthy buyers from abroad, he added.

In April 2008, Daiman's wholly-owned subsidiary Caversham Universal Ltd subscribed to a 70% equity in CNES Property Pty Ltd for A$875,000.

Australia-based CNES was formed in February 2008 and it is now building some bungalows in Perth.

Siah said demand for properties, especially residentials, in Johor had picked up after almost a two-year hiatus following the global economic recession.

He said this could be seen from the many new property launches, especially in Johor Baru, albeit the small number of units launched.

Siah said Daiman would launch 75 double-storey linked houses with prices from RM300,000 and 44 double-storey cluster homes priced from RM480,000 in Taman Gaya here in the first half of 2011. These units will have a gross development value (GDV) of RM40mil.

The company will also launch 68 double-storey cluster homes with a GDV of RM24mil in Taman Daiman Jaya in Kota Tinggi in the third quarter.

It will also offer 16 one-and-a half-storey semi-detached factory buildings with a GDV of RM30mil in Taman Perindustrian Murni Senai in the first quarter.

For the financial year ended June 30 (FY10), Daiman posted RM29.74mil net profit on RM123.319mil revenue compared with RM23.44mil and RM107.125mil respectively in FY09.

By The Star

Pantai plans Gleneagles hospital in Iskandar

PANTAI Holdings Bhd plans to build an estimated RM500 million hospital in Iskandar Malaysia, Johor, to help provide more world-class healthcare services in the country.

The hospital, to be called Gleneagles Medini Hospital, will be built on a 6ha site that Pantai is buying.

The land is in the mixed development area of Medini, Iskandar, the group said in a statement yesterday. It said Gleneagles Medini Hospital will be jointly developed with Global Capital & Development Sdn Bhd (GCD).

An agreement was signed between GCD, a consortium led by Mubadala Development, and Pantai's wholly-owned Pantai Hospital Johor Sdn Bhd.

"This development will set new benchmarks for quality healthcare to reinforce Malaysia's capacity in delivering world-class medical services to both Malaysians and foreign partners," Pantai chairman Khairil Anuar Abdullah said in the statement.

The healthcare complex will eventually comprise a 300-bed private tertiary hospital and a 150-suite medical office block with centres of excellence.

GCD chief executive Keith Martin said the group is proud to be working with Pantai. "The high standards set by Pantai are aligned with GCD's vision to ensure the best in planning, design and management within Medini."

By Business Times

RM500m Azea latest project in Danga Bay

A RM500 million high-end mixed development known as Azea Properties will be coming up on a 1.7ha site in Danga Bay, Johor Baru, one of the the key flagship zones within Iskandar Malaysia.

A joint-venture agreement to develop the commercial project was signed among Imperial Marine Pte Ltd, Danga Bay Sdn Bhd and Pembinaan Sahabatjaya Sdn Bhd in Johor Baru yesterday.

Johor Mentri Besar Batuk Abdul Ghani Othman, who is also the joint-chairman of the Iskandar Regional Development Authority, witnessed the signing ceremony. .

Imperial Marine, a Singapore-based property investment company helmed by Tan Yang Po, will invest RM150 million or 30 per cent of the cost of the project, while Danga Bay will put in RM185 million (37 per cent).

Pembinaan Sahabatjaya Sdn Bhd will invest RM165 million, or 33 per cent of the project cost.

Danga Bay is a waterfront master developer with landbank over 182ha along the Straits of Johor, while Pembinaan Sahabatjaya, a building and civil engineering company, has successfully undertaken projects worth over RM1.3 billion since 1999.

Tan, also the chief executive officer of Azea Property Investment Pte Ltd, has property investments around the world including in the UK and the US, where over RM50 million worth of its choice residential properties have been snapped up.

The proposed waterfront development in Danga Bay would comprise 700 units of serviced apartments spread over four tower blocks. Selling prices range between RM650 and RM880 per sq ft.

Retail spaces will also be incorporated into the buildings.

The latest joint-venture comes on the heels of several major recent investments in Danga Bay, including a RM40 million hotel by Tune Hotels Sdn Bhd and a RM150 million four-star hotel to be built by a Kuala Lumpur based developer.

By Business Times

Malaysia-S'pore firm to develop Johor poject

Singaporean and Malaysian investors today announced a partnership to jointly develop a RM500 million new waterfront residential and commercial project in Johor.

To be known as Azea Properties, the high-end development will be coming up on a 1.68 hectare site in Danga Bay – one of the key flagship zones within Iskandar Malaysia.

The Singapore investment, valued at an estimated RM150 million, is by Imperial Marina Pte Ltd – a property investment company helmed by businesswoman Tan Yang Po.

The company is a special purpose vehicle set up by Tan to explore and seize investment opportunities in the booming Iskandar Malaysia real estate sector.

According to a statement today, she will be teaming up with Danga Bay Sdn Bhd (37 per cent) and Pembinaan Sahabatjaya Sdn Bhd (33 per cent) to develop the project through a joint-venture company – Para Impiana Sdn Bhd.

Witnessing the joint venture signing ceremony in Johor Baru today was Menteri Besar Datuk Abdul Ghani Othman, who, with the Prime Minister, is joint-chairman of the Iskandar Regional Development Authority (IRDA).

Danga Bay is a waterfront master developer with a land bank of over 450 acres along the Straits of Johor, while Pembinaan Sahabatjaya, a building and civil engineering company, has successfully undertaken projects worth over RM1.3 billion since 1999.

Tan, who is also chief executive officer of Azea Property Investment Pte Ltd, has property investments around the world.

Her latest foray was into the United Kingdom and the United States, where over RM50 million worth of choice residential properties were snapped up.

This joint-venture comes on the heels of several major recent investments in Danga Bay, including the RM40 million hotel by Tune Hotels Sdn Bhd and a RM150 million 4-star hotel project to be built by a Kuala Lumpur-based developer.

In August this year, property developer Dijaya Corporation Bhd had also entered into a 60:40 joint venture with Danga Bay Sdn Bhd (DBSB) subsidiary, Iskandar Waterfront Sdn Bhd, to develop high end condominium and retail properties on 37 acres of land.

DBSB chief executive officer Datuk Lim Kang Hoo said the latest joint venture with Imperial Marina was a clear signal of the growing confidence of Singapore investors in opportunities across the causeway since the Prime Ministers of Malaysia and Singapore announced a resolution to the long-standing issue of Malaysian railway land in the Republic earlier this year.

Lim also noted a marked increase in investment interests since Khazanah Nasional Berhad and Temasek Holdings Limited announced the setting up of a joint-venture company to explore iconic property developments in Iskandar Malaysia.

Meanwhile, Tan said the proposed waterfront development in Danga Bay would comprise 700 units of serviced apartments spread over several tower blocks.

Retail space would also be incorporated into the buildings.

“All available units in one of the tower blocks has already been booked even before the project launch,” she disclosed, with selling prices ranging from RM650-RM880 per sq ft.

She said the premier seafront project offered exceptional value because of its prime location and proximity to Singapore.

Most of the prospective buyers, she admitted, would be members of the Azea Property Investment Club - a 1,000-strong member club of ordinary individuals who invest in properties around the globe.

The group recently acquired £3 million (about RM15 million) worth of 12 Victorian-styled apartment units in London and another 200 units of landed properties valued at over US$7 million (about RM21.7 million) in Houston, USA – all of which were going for sale below market value.

“We’re also looking into developing commercial properties on an adjoining parcel of land in Danga Bay,” she said.

By Bernama

Johor developers face future challenges

JOHOR BARU: Demand for residential properties is still good in Johor but developers will face challenges in the coming years due to labour shortage and a hike in building material prices.


Simon Heng .... ‘The take-up rate for new houses in Johor is still good despite the increase in prices.’

Real Estate and Housing Developers Association (Rehda) Johor branch chairman Simon Heng said developers did not have much choice but to pass the additional cost to house buyers.

He said building materials costs had increased by 10% to 15% in the past two months, translating into higher selling prices for new houses, especially in Johor Baru.

The take-up rate for new houses in Johor is still good despite the increase in prices and hopefully the trend continues next year,'' Heng told StarBiz on Wednesday.

He said banks were still offering attractive home loans, including full-loan facility for first-time buyers with a monthly household income of less than RM3,000 as announced recently in Budget 2011.

He said developers should look at coming out with innovative packages, including gated-and-guarded precincts and high-speed broadband facilities, to attract buyers.

Heng said the construction industry was also facing labour shortage and had to depend on foreigners as locals were not interested to take up the job.

He said many Indonesians that had been working in the construction sector in Malaysia for more than five years had left home as the construction sector in the republic was booming.

He said despite having workers from Bangladesh, Pakistan and Vietnam, contractors still preferred Indonesians as they were more hardworking and easy to communicate with.

By The Star

RM27b investment spent in Iskandar Malaysia

A total of RM26.89 billion or 42 per cent of the committed investments of RM64.38 billion in Iskandar Malaysia have been spent on projects on the ground as at end of September.

A statement from the Iskandar Regional Development Authority (IRDA) said the 9th meeting of the Members of Authority (MoA) of IRDA, which was chaired by Prime Minister Datuk Seri Najib Tun Razak on Monday, was pleased that several key projects were on track and ready to commence operations in 2011/2012.

These include the Netherlands Maritime Institute of Technology (recruitment to start in 2011); Newcastle Medical University Malaysia (in October 2011); Johor Premium Outlets (in November 2011); LEGOLAND theme park in Medini North (2012); Lifestyle Retail Mall@Medini (2012); and Marlborough College Malaysia (2012).

Najib is the IRDA co-chairman with Johor Menteri Besar Datuk Abdul Ghani Othman.

The statement said Iskandar Malaysia's positive growth continued to be on track for 2010 with greater awareness locally and internationally.

This was achieved despite the weak worldwide economic growth last year but following a strong rebound of regional economies in 2010.

It said the meeting also discussed strategies to woo more local and foreign investments to Iskandar Malaysia.

IRDA members were also informed that Iskandar Malaysia has been in the forefront of implementing the government's Economic Transformation Programme (ETP), aligned with the New Economic Model (NEM).

Seven of the 12 National Key Economic Areas (NKEAs) under the ETP are being promoted in the region, it said.

The statement said several Entry Point Projects (EPPs) under the NKEAs not only offered business opportunities to local and foreign investors but also help develop Iskandar Malaysia to be "a strong and sustainable metropolis of internatioal standing".

The MoA noted that Iskandar Malaysia continues to attract interest from investors given its strategic location, strong brand, competitive cost of doing business, transparency and good investment environment.

The economic corridor attracted 58 per cent domestic and 42 per cent foreign investments, with positive outlook from Singaporeans, both in the manufacturing and services sectors.

IRDA said it is also targeting at more impactful promotions and marketing activities next year.

The MoA was also given updates on the progress of the Johor Baharu Sentral Business District Transfrmation Plan and the Iskandar Malaysia Human Capital Blueprint initiatives, among other matters.

By Bernama