Daiwa-Sunway JV to build prefab homes worth RM210 mil

KUALA LUMPUR (June 12): Daiwa House Malaysia Sdn Bhd, a subsidiary of Japan’s largest prefabricated homebuilder Daiwa House Industry Co Ltd, has entered into a joint venture with Sunway Bhd’s unit Sunway Iskandar Bhd (SISB) to construct 100 prefabricated homes in Iskandar Malaysia, Johor, with a gross development value of RM210 million.

In a statement yesterday, Sunway said the properties to be developed are targeted at buyers in Malaysia, Singapore and Japan, in accordance with its plan to attract Japanese homebuyers to the Iskandar community.

“The Japanese are one of the top five investors in Iskandar. Japanese interest in Iskandar is steadily increasing due to the latter’s conducive environment and proximity to Singapore. Under the  [partnership] agreement, SISB has transferred the lease of a 13-acre (5.26ha) [piece of] land located in Sunway Iskandar to the JV company, which is to be 70%-owned by Daiwa and 30% by SISB, [with] a financial consideration of RM63 million for the development of 100 units of landed homes,” the statement read.

Sunway Property managing director Sarena Cheah signed the joint venture agreement with Daiwa House Malaysia managing director Daisuke Usugi yesterday.

The parcel of land marked for development is within Sunway Iskandar’s Lakeview Precinct, which is adjacent to the 20-acre Emerald Lake.

The prefabricated homes will comprise bungalows, semi-detached and cluster homes in a gated and guarded community with facilities such as a clubhouse, swimming pool, gymnasium, multipurpose hall and child care centre. The project is expected to be launched in early 2016, with the handing over to customers slated for mid-2017, said Sunway.

Prefabricated housing is the manufacturing of houses or housing components offsite in a factory before final installation on site.

“This strategic collaboration is in line with Sunway’s vision to integrate world-class liveability in Sunway Iskandar. With Daiwa House’s expertise in prefabricated technologies, we hope to expand prefabricated housing technologies in Malaysia and to deliver high quality products to our homebuyers in Sunway Iskandar,” said Cheah.

This article first appeared in The Edge Financial Daily, on June 12, 2015.