Penang's Ivory Properties in RM2bil joint venture in Johor Baru

Low (left), state housing and local government exco Datuk Abdul Latiff Bandi (2nd from left) and other officials looking at an artist's impression of the Johor project.

PETALING JAYA: Penang developer Ivory Properties Group Bhd has entered into a joint venture (JV) with JB Lee Properties Sdn Bhd for a mixed project with an estimated gross development value of RM2bil in Teluk Jawa, Johor Baru.

In a filing with Bursa Malaysia, the company said the JV was in line with its strategic plan of expanding its reach outside Penang and securing partnerships to develop strategically located land-bank.

This will be Ivory’s first project outside Penang.

“Johor has been making waves with its current measures to spur economic growth and attract investment,” group chief executive officer Datuk Low Eng Hock toldStarBiz. “This land of opportunity has since become a haven for property development for many top-notch property moguls.”

Ivory unit, Ivory Residence Sdn Bhd, and JB Lee have agreed to enter into an unincorporated JV for the proposed development.

JB Lee, which is principally involved in property investment, owns the 7.1-acre freehold agriculture land in Johor Baru.

“The property will be converted and re-zoned for use as a mixed development of residential and commercial properties,” the company said.

Low said the development would consist of four blocks of residential towers, which would sit above a commercial podium featuring retail outlets.

“However, this is still subject to approval from the authorities,” he added.

Ivory’s participation in the proposed JV will be funded via internal funds or bank borrowings.

Barring any unforeseen circumstances, Ivory expects the proposed JV to be completed by the year 2020.

Ivory is positive on the proposed development despite talk of the property market slowing.

“We are quite positive on this, given the great location, which is especially ideal for professionals working in the Pasir Gudang industrial and logistics hub. Through the JV, the landowner and developer share the risk,” he said.

Moving forward, Low said the company was open to more developments outside Penang, especially in Kuala Lumpur and Johor Baru. - The Star