China’s Greenland Group buys 128 acres land from Iskandar Waterfront City for RM2.4 billion

KUALA LUMPUR (Jan 21): Shanghai state government linked-Greenland Groupand Iskandar Waterfront City Bhd (IWCB, formerly known as Tebrau Teguh Bhd ( Financial Dashboard)), have inked a RM2.4 billion deal to develop the Tebrau Bay Waterfront City.

In a press statement issued by Iskandar Waterfront Holdings Sdn Bhd (the parent of IWCB) this afternoon, it is said that "Greenland Group will invest RM2.4 billion to acquire 128-acres from IWCB (fundamental: 1.65;  valuation: 1.5) under Phase 1 of the project, which will showcase a snow world theme park, an opera house, a hospital specialising in Chinese traditional medicine and a school".

According to the statement, the agreement was signed in Shanghai this afternoon, between officials of both companies and witnessed by Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin. However, no announcement has been made to Bursa Malaysia on the signing of the agreement at press time.

In the statement, Mohamed Khaled said high impact foreign direct investments (FDI), including from China, were necessary to jump-start economic activity in Johor.

“I welcome their long-term strategic interest to jointly transform Johor Bahru into a modern international waterfront city and destination,” he said.

The deal represents Greenland Group's second investment in Iskandar Malaysia.

Last April, it also invested RM600 million for the joint-development of 13.6 acres in Danga Bay with Iskandar Waterfront Holdings Sdn Bhd (IWH), where a RM2.2 billion integrated mixed property project is coming up, including the recently-launched 'Jade Palace' luxury condominiums.

IWCB is 47%-owned by Johor-based IWH. IWH is a public private partnership involving federal, state and private interests, with its shareholders comprising the Johor government through its investment arm Kumpulan Prasarana Rakyat Johor, Khazanah Nasional Bhd and Tan Sri Lim Kang Hoo.

IWCB shares were traded 8 sen or 5.52% higher at RM1.53 as at 3.03 pm, with some 3.63 million shares done.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

Majupadu previews Newpark in Kluang

Newpark will be the first eco-friendly real estate development in central Johor. Photo by Majupadu

KLUANG: Majupadu Development Sdn Bhd, a Kluang-based property developer, has announced the development of Newpark, the first eco-friendly real estate development in central Johor.

“Newpark represents an opportunity to upgrade Kluang. Newpark will be the largest master-planned commercial project in Kluang,” said Majupadu founder and managing director Tey Ah Kau in a press release.

“The location is very strategic, surrounded by large, mature housing estates, the Federal Building, the future Inland Revenue Board building and Intan (Institute Tadbiran Awam Negara). Access is just 10 minutes from the North-South Expressway, five minutes to Kluang Mall, and within a 45-minute drive Newpark will serve a catchment area of over 700,000 people in the Kluang and Batu Pahat districts. Within one hour’s drive is Johor Baru and within two hours is Singapore,” the statement said. 

The 247-acre (100ha) Newpark will include a master-planned commercial zone which is more than 90 acres in size, located about 10 minutes’ drive from the North-South Expressway, which can be accessed via the main road of Jalan Batu Pahat. Majupadu collaborated with Singapore-based Pomeroy Studio to create a sustainable and eco-friendly concept for Newpark. 

The first phase is scheduled to start in 2015 and will comprise a hotel and convention centre, high-rise residences, a hypermarket, an education hub and the city commercial boulevard shop office area. The timing of the launches for each component is still in the planning phase, said the company.

The company also plans to widen Jalan Batu Pahat to eight lanes from the current four lanes with a 30m-wide entrance. 

“Central to Newpark is the investment in sustainable design and eco-friendly technologies which will benefit residents and businesses,” said Majupadu executive director Tey Fui Kien.

“Optimisation of light, ventilation, grey and rainwater harvesting methodologies and exploration of solar energy will be among some of the features designed to optimise energy and water usage in Newpark. It will be Majupadu’s flagship development for sustainable living in Kluang,” said Fui Kien. 

“We have been able to implement key passive design principles which form the core of our design process to create sustainable, eco-friendly and liveable built environments. Urban greenery and sky gardens form a fundamental part of the design, helping to reduce ambient temperatures and thus cooling costs. Intelligent positioning of the buildings helps to increase natural ventilation while optimising natural light, further reducing energy use while improving the overall experience for visitors and guests. These design elements create minimal impact on the environment yet significantly improve the overall experience for the delegates, guests and visitors who will use the complex,” said Pomeroy Studio founding principal Professor Jason Pomeroy. 

Fui Kien said prices and other details are being finalised.

“We see immense scope for development in Kluang and have identified certain gaps in the market. Currently, we continue our discussions with prospective partners for key components such as the hotel, the hypermarket and the education hub. We will take the time to review the details and ensure that we bring in the right partners and the right approach to the project.

“Majupadu has a strong track record in Kluang and we have the local knowledge. We want to bring in operators who can achieve our vision of uplifting the lifestyle of Kluang residents. We look forward to harnessing their expertise with our local market knowledge to deliver the right product and service mix for Kluang folk. This is our approach in Kluang Mall and for Newpark. We are constantly talking to prospective partners who wish to bring new concepts into the market,” said Fui Kien.

This article first appeared in The Edge Financial Daily, on January 16, 2015.

Country Garden receives DoE approval for Forest City project

KUALA LUMPUR (Jan 14): Country Garden Pacificview Sdn Bhd (CGP), the master developer for the controversial Forest City project in Johor, has received the approval on its detailed environmental impact assessment (DEIA) from the Department of Environment (DoE).

In a statement, CGP said the DoE has accepted its proposed measures to minimise or mitigate environmental impacts through “integrated and workable solutions”.

With the approval, CGP’s executive director Datuk Md. Othman said the property developer's next step is to ensure “compliance monitoring” in carrying out the project works.

“Our next step is to ensure that all compliance monitoring, in terms of air, noise, water quality and sediment, are robustly implemented and carried out,” he said.

Md. Othman said one of CGP’s immediate priorities is to minimise the impact to the local communities and to ensure the surrounding ecology are well preserved.

He also expressed his appreciation to the relevant parties who have contributed to the DEIA.

Last week, The Malaysian Insider reported CGP’s denial that the size of its housing project had been limited to less than 1,000 acres, refuting the news portal’s earlier report on the matter.

The news portal had earlier quoted a source saying that the DoE verbally informed CGP of the new limits after complaints from locals and the Singapore government over the reclamation works in the narrow waterway between Malaysia and the republic.

CGP is a 60-40 joint-venture between China’s Country Garden Holdings Ltd and Esplanade Danga 88 Sdn Bhd. Esplanade Danga is said to have the Sultan of Johor and Johor state government as shareholders.  

The controversial project entails 355ha of existing land 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.

According to documents presented by CGP to the authorities sighted by The Edge, the gross development value (GDV) of Forest City will come up to RM600 billion over 30 years. - The Edge Markets

Project expected to be completed in 2016

Big development: Part of Sungai Segget has been opened under phase one of the multi-billion ringgit of the Johor Baru city centre transformation project.

DESARU: The phase one of the multi-billion ringgit Johor Baru city centre transformation project is expected to be completed in the third-quarter of next year.

Iskandar Regional Development Authority (Irda) chief executive officer Datuk Ismail Ibrahim said the project kicked off with the opening of Sungai Segget in the last-quarter of 2014.

“The opening of the river marks the start of the ambitious project to transform the JB city centre into a vibrant place within the next five to seven years,” he said.

Ismail said this in a press conference after witnessing the signing of agreement between Gait Rungkai Sdn Bhd with Ronser Bio-Tech Sdn Bhd and CP Coatings Sdn Bhd.

Gait Rungkai was represented by it chairman and managing director Dr Nor Azhar Mohd Arif while Ronser Bio-Tech was by its chairman Woo Ming Foong and CP Coatings by Ling Liong Lai.

Under the agreement, Gait Rungkai would be appointed as the distributor of lake and river technologies using both Ronser Bio-Tech’s and CP Coatings’ patented technologies.

Ismail said the Federal Government had allocated about RM240mil to rehabilitate, rejuvenate and beautify the river under phase one of the project including the construction of the centralise sewerage treatment plant (CSWP).

With the CSWP, the water quality in the 1.45km river would improve through reducing pollutant loads to the Straits of Tebrau.

“The water quality level will be elevated and sustained at Class II by the third-quarter of 2016, which allowed marine life to thrive.

The success of the river rehabilitation project will be the focal point of the entire redevelopment project of the city centre,” he said.

Sungai Segget which flows along Jalan Wong Ah Fook in downtown Johor Baru was covered in 2005, a short term measure at the point of time to ensure odour and pollution of the river was contained above the ground. - The Star

Government positive on oversupply of homes

PONTIAN: Although there is a possible oversupply of service apartments in Iskandar Malaysia, the state government is still optimistic about the property market especially demands for certain segments of property including affordable homes for locals.

Johor Mentri Besar Datuk Khaled Mohamed said besides that, the location of the property, price and type also played a role.

“Maybe certain areas there are too many. But in certain areas there are lacking,” he said when asked to comment on talks among investors about an oversupply of property in Iskandar.

Khaled said that in any investment, there was always a risk and it was up to the investors to evaluate such risks.

“The government is not going to tell, encourage or stop investors from investing in the property market.

“I believe that in Iskandar there is still demand for certain segments of property,” he said during the ground-breaking ceremony of a 30ha Sungai Pulai Wellness Resort, mixed development project.

The project, spanning over eight years, is valued at RM420mil in the first phase, and comprises a mix development project including eco-tourism.

Khaled said that the project, which was a wellness resort, was being done adjacent to the Sungai Pulai Wetlands, which was the state’s third Ramsar site spanning over 9,126ha.

“We have two other Ramsar sites including Pulau Kukup and Tanjung Piai,” he said, adding that he wanted the developer to adhere to all the proper regulations when developing the resort.

“The Ramsar Convention Bureau did not prohibit the development of the wetlands but any development should take into consideration the sustainability of the area,” he said, adding that this project was being done on private land next to the Ramsar site.

He added that the state government only allowed projects, which were meant for eco-tourism in the area.

Khaled stressed that under the state government’s Tourism Master Plan, there was a need to have this kind of wellness resorts in the state.

He added that the state government was committed to preserving the state’s Ramsar’s sites and has since frozen all activities pertaining to logging and exploitation of the area.

The resort, to be developed by Dimensi Panorama Sdn Bhd, which is a member of MB Group, will champion healthy living and promote eco-tourism.

The development comprises 1,351 apartment units and landed properties, a wellness clubhouse and a renowned international brand hotel located next to the wetlands.

The residential precincts will be constructed in four phases and will consist of only low-density development buildings not extending beyond 12 levels to maintain the natural green landscape.

The resort will be complemented by eco-recreational activities and facilities such as organic and hydroponic farming, mangrove planting, river cruise, cycling and boardwalks. - The Star

China developer Country Garden: No decision yet from DOE on land plan 

“In the most recent discussions in late December 2014, the DOE and Country Garden Pacificview discussed assessment directives and compliance to high standards. These discussions do not mean that the project size is to be limited or compromised in any way,” said Country Garden Pacificview executive director Datuk Md Othman Yusof (file pic) in a statement. File pic shows Md Othman showing the map of Forest City which is located near to Pendas in Gelang Patah, Johor.

PETALING JAYA: China developer Country Garden Holdings Ltd is awaiting the final decision from the Department of Environment (DOE) on its application to reclaim and develop 1,600ha in the Straits of Johor that is meeting resistance from Singapore.

It has been reported that the application to reclaim the land for a project called Forest City had been approved, but only for 405ha.

An official of the company said no concrete decision had been made by the DOE as yet, and expects to only hear from the department later this week.

“We are very confident that the detailed environmental impact assessment (DEIA) report that was done shows that the project is technically sound,” Country Garden Pacificview business development manager Allen Khong told StarBiz.

Country Garden Pacificview is the master developer of the RM600bil gross development value Forest City and is a joint venture between Country Garden and Johor state company Kumpulan Rakyat Prasarana Johor.

It was reported that the DOE had decided to limit the development to 405ha, following complaints by the Singapore government and locals that the reclamation work would negatively impact the environment in the narrow waterway. 

“In the most recent discussions in late December 2014, the DOE and Country Garden Pacificview discussed assessment directives and compliance to high standards. These discussions do not mean that the project size is to be limited or compromised in any way,” said Country Garden Pacificview executive director Datuk Md Othman Yusof (pic) in a statement released yesterday evening. 

Md Othman added that to keep all stakeholders and interested parties up-to-date, the company was developing a dedicated online vehicle as a frequently asked questions and query response platform, which will go live by Jan 9. 

The Singapore government had earlier issued a note asking for more details on the project and also its impact on the Straits of Johor, thus provoking the compilation of a DEIA report.

Work on the project, which comprises four reclaimed islands, has been suspended since June 16, pending the compilation and approval of the DEIA report. 

The DOE’s supposed move did not come as a surprise to market watchers, given the environmental impact of the reclamation works to the area.

However, the reported limitation could be seen in a positive light, given the current weak sentiment in the property market. 

CB Richard Ellis (M) Sdn Bhd group executive director Paul Khong said the reclamation works would take one to two years to complete, by which time local market sentiments may improve. 

Meanwhile, Landserve (Johor) Sdn Bhd executive director Wee Soon Chit said: “There is no need to be so gung ho and reclaim everything now. Reclaiming everything at one go would also impact the company’s cash flow. It already has the existing project in Danga Bay, which should keep it busy for the time being.” 

Khong said Iskandar should still benefit from the further industrial relocations and spillovers from Singapore in the immediate future, especially so when the market reverts positively. - The Star

Johor to provide affordable housing for low and middle income groups

More help: Mohamed Khaled (third from left) presenting a bicycle to one of the pupils while Dialog Group Bhd executive chairman Tan Sri Dr Ngau Boon Keat (second from left) and Pasir Gudang MP Normala Abd Samad (forth from left) look on at Pasir Gudang.

PASIR GUDANG: Johor will give more emphasis and focus on assisting the urban poor especially those living within Iskandar Malaysia economic growth corridor.

Mentri Besar Datuk Mohamed Khaled Nordin said that the assistance comes through several initiatives and programmes such as providing affordable houses for eligible buyers from the low and the middle income groups.

He said providing the affordable houses for particularly the first time house buyers in the urban areas was the main focus that the state new administration had given after the 13th general election.

“Housing is always an issue in a big city like Johor Baru, and we want to make sure Johoreans are not deprived from owning their own houses,” said Mohamed Khaled.

He told reporters after presenting school aid including bicycles from Dialog Group Bhd to 250 pupils from poor families in the Pasir Gudang constituency here on Saturday.

Initially, Mohamed Khaled said the state government had targeted to provide 28,000 affordable houses in Johor of which 20,000 units to be built in Iskandar Malaysia within the next four to five years.

“However, we have to review the figure to about 37,000 units due to the overwhelming response for first time house buyers and they will be ready before 2018,” he said.

Under the state housing quota, developers are required to allocate 40% of the residential properties for low-cost, medium-cost and affordable houses prices below RM150,000 each as well as affordable shop lots.

Mohamed Khaled said the construction of the affordable houses was the responsibility of the state-linked companies and the private developers with the state government monitoring the project.

He said in order to allow more eligible first time house buyers in Johor to own affordable houses priced at RM150,00 each, the state government had increased the household monthly income from RM6,000 to RM8,000.

“The problem of urban poor in big cities in Malaysia is not something unusual, it happens in other parts of the world due to rapid urbanisation process,” added Mohamed Khaled.

He said assisting the urban poor did not fall solely on the Federal and state governments adding that the private sector also had a role to play. 

Mohamed Khaled said the state government together with the private sector had also embarked on entrepreneurship programmes to encourage the urban poor to involve in businesses to supplement their income. - The Star