WEST MALAYSIA PROPERTY NEWS
Iskandar Waterfront City Bhd Inks RM2.4 Billion Deal With
Chinese Developer
A
t a time when there is
an increased level of
cautiousness in the
Johor property scene, a
Chinese developer has inked an
RM2.4 billion 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 RM2.4 billion.
The RM2.4 billion 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).
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 RM125
billion 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 vicechairman 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 RM600 million, comprising an
RM2.2 billion integrated mixedproperty project, which includes
the recently launched Jade Palace
luxury condominiums.
www.PropertyHunter.com.my
L
and reclamation is not a new
thing which instead has been
done in a well-developed
country such as Singapore
and Holland.
It was said by the Johor government
referring to the controversial multibillion ringgit Forest City project,
which will s ee reclamation of a huge
part of Straits of Johor to create four
man-made islands.
“Look at Singapore. They have also
done massive land reclamation,”
Menteri Besar Datuk Mohamed
Khaled Nordin said.
He also said the public should not
be affected by negative views on the
environmental impact, as reported
in Star Property online.
The project would now proceed as
it had received approval from the
Department of Environment (DOE)
on January 9.
Mohamed Khaled said that all
projects on reclaimed land in Johor
had to meet stringent requirements
and receive environmental impact
assessment approval from the DOE.
Mohamed Khaled said the
state government would
ensure that the welfare of
and Taman Ungku Tun Aminah
below market value as reported in
The Star online.
A
Scaled model of the master development plan of Iskandar Waterfront City
fishermen affected by the
land reclamation in south
Johor would be taken care
of under the Fishermen’s
Fund.
Under a state ruling introduced last
year, property developers involved
in land reclamation within Iskandar
Malaysia have to contribute to the
fund.
House Buying Scam Uncovered
s the GST implementation
is coming up pretty soon,
there will be rush in
purchasing property due
to avoid the price hike.
In IWCB’s filing, 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%.
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Land Reclamation Is Not A New Thing
Sources said they would bring a
prospective buyer to the house
before collecting a deposit of
between RM1,000 and RM2,500
in cash.
Together, Greenland and Johor
state government-linked company
IWCB will develop an RM3 billion
new waterfront city on the land in
Tebrau Bay.
GL is a wholly owned subsidiary of
Greenland Hong Kong Investment
A project on reclaimed land in Johor
However, criminals are seeing this
as an instant way to gain profit by
offering to sell houses with very
attractive price.
Recently, police has uncovered
a house buying scam occurred n
Johor after they arrested a couple,
in their 30s who had allegedly
cheated more than a dozen
desperate house buyers.
It is learnt that the couple had used
popular property websites to post
offers to sell their house in Perling
“Most of the time they do
not bring the potential
buyer into the house,
claiming it was still
occupied,” the sources said,
adding that the victims
only realised that they had
been conned when they
failed to contact the couple
after the transaction.
Police have received numerous
reports in Johor Baru North and
Sri Alam. It is learnt that the couple
were tracked down by officers from
the state commercial crime unit
and remanded. Investigations were
being carried out under Section 420
of the Penal Code for cheating.
The duo was also investigated for
the similar cases elsewhere.
www.PropertyHunter.com.my
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