UMLand’s Citadines Medini to offer buy-and-leaseback option

JOHOR BAHRU (June 12): United Malayan Land Bhd (UMLand) will be launching its first hotel-branded residence Citadines Medini by September. Purchasers will be offered a buy-and-leaseback option.

Located at the developer’s 30-acre integrated development UMCity Medini Lakeside in Medini, Iskandar Malaysia in Johor, the project with a gross development value (GDV) of RM175 million will house 214 serviced apartment units in a single 25-storey tower, said UMLand group director for sales and marketing, branding and communications Michael Cheng.

Unit built-ups range from 430 sq ft to 1,050 sq ft. The pricing is yet to be determined, but the developer is looking at around RM500,000 as a “good entry point”.

Cheng told TheEdgeProperty.com that a soft launch for Citadines Medini will be held in Singapore this August with an official launch in September. Upon completion, the residences will be managed by Ascott Ltd.

“We picked Singapore [to soft launch] because of the Ascott brand. Both Citadines and Ascott are well known in Singapore. We know that this is also the first hospitality investment that is available for sale in Johor.

“We are also riding on Medini’s great location as it is in the central business district of the entire Iskandar Puteri development,” Cheng said.

Purchasers will have the option to lease their units back to Citadines to be run [on their behalf]. “So for those who are looking for long-term investment with a reputable operator, this is the right product for them,” Cheng said, adding that completion is expected in 3Q2018.

UMCity Medini Lakeside has a GDV of RM1.2 billion with about 17 acres dedicated for parks and recreation.

It will be home to the new UMLand southern region headquarters, which will be housed in an office tower with a GDV of RM215 million and will be completed by 3Q2018. The 19-storey office tower comprises 108 office units. UMLand will occupy only two floors while the rest will be sold.

Cheng said the developer is targeting Japanese and Taiwanese investors, besides Singaporeans and Malaysians for the office units. “The estimated take-up rate as of now is about 50%.” It was launched last year with prices starting from RM800,000.

Other projects in UMCity Medini Lakeside that are slated for official launch next year are hotel OZO Medini with 198 rooms, and upscale serviced apartment and hotel project Shama Medini. The latter has a GDV of RM230 million. It offers 213 serviced apartment units. To date, only 90 units of Shama Medini are left for sale. The units have built-ups from 583 sq ft to 2,015 sq ft. Prices start from US$187,000 (RM798,760).

Both projects will be managed by ONYX Hospitality Group, which has just soft launched the five-star Amari Johor Bahru at UMLand’s Suasana Iskandar project.

Over at its maiden township Bandar Seri Alam, Johor, the developer will be launching Opal 2 in August. Opal 2 comprises 82 double-storey cluster and semi-detached homes with built-ups starting from 2,228 sq ft. Prices start from RM788,000.

Also coming up in Bandar Seri Alam is the 22.1-acre Lee Chong Wei International Sports City, which will begin construction by year-end.

“We want to bring more commercial activities into Bandar Seri Alam. We have a sizeable student population there and we want to bring the community together through sports,” added Cheng.

On the 350-acre Johor Halal Park in Pasir Gudang, he said the first phase of 100 acres has been 50% sold and 95% completed. The park is a joint venture between UMLand and Johor Biotechnology & Biodiversity Corp, which is fully owned by the Johor state government.

In the Klang Valley, UMLand is preparing to launch the second phase of Mahkota Hills in Semenyih, Selangor. The project comprises double-storey homes. The 355.7-acre Mahkota Hills, with a GDV of RM2 billion, is located 14km from the University of Nottingham Malaysia campus.

Cheng also revealed that the developer is currently planning a transit-oriented development in Putrajaya.

“It is in the advanced planning stage. That’s a very exciting development and will be a major one for us. There will be office towers, hotels, residential blocks, retail spaces and shopoffices,” he said, adding that no GDV is available yet for the project.

On the entry of China developers and China buyers into the Johor property market, Cheng admitted that due to China’s capital outflow restrictions recently, “there is now a surge in supply and adjustments have to be made”.

As for the locals, they seem to prefer landed properties of a certain price range for their own stay, he said. Nevertheless, with over 1,800 acres undeveloped landbank across Malaysia, UMLand is optimistic about Malaysia’s long-term property market outlook.

This story first appeared in TheEdgeProperty.com pullout on June 9, 2017. Download TheEdgeProperty.com pullout here for free.