Damansara Realty in JV with Country Garden to develop Central Park

JOHOR BAHRU (Oct 14): Damansara Realty Bhd will enter a joint venture (JV) with Country Garden Holdings Co Ltd to develop a 53-acre freehold land parcel in Johor Bahru into an integrated township known as Central Park.

The joint venture called DAC Properties Sdn Bhd will be 30%-owned by Damansara Realty’s indirect wholly-owned subsidiary Damansara Realty (Johor) Sdn Bhd and 70% held by Country Garden Management Sdn Bhd, which is wholly owned by Country Garden.

DAC Properties will develop Central Park over six to eight years, starting from the fourth quarter of 2016.

The township, located in the Tebrau district and just five kilometres to the Johor Bahru city centre, is aimed at young homebuyers in Malaysia.

Besides residential units, it will also have commercial shop spaces and various amenities. The first phase will be launched in the first quarter of 2017.

Bernama reported that the signing ceremony was held today with Damansara Realty represented by executive-vice chairman, Datuk Daing A Malek Daing A Rahaman and Country Garden by regional president (Malaysia), Fu Jin Ling.

“Country Garden has an impressive track record of property development in China, Malaysia and Australia. This partnership represents a significant opportunity for DBhd to execute a largescale project alongside one of China’s most reputable developers. We expect Central Park to generate a significant and steady stream of income to the Group over the next few years," said Daing A Malek.

“Apart from being an iconic landmark when fully developed, Central Park will also create massive job opportunities for locals in Johor, giving the economy a boost,” he added.

“Malaysia has always been a key market for us. We see a lot of potential particularly in Johor Bahru, where other major developments are coming up. The city is poised to become an international metropolis, and we are proud to be a part of its transformation,” said Fu.

Hong Kong-listed Country Garden’s flagship project in Malaysia is Forest City, a mega-development in Johor and its largest beyond China, with a total gross development value of more than RM400 billion. Apart from Central Park and Forest City, the developer has two real estate projects in Malaysia: Danga Bay also in Johor and Country Garden Diamond in Kuala Lumpur.

The Central Park site is part of a larger 63-acre land parcel (TDA Land) that Bursa Malaysia-listed Damansara Realty will acquire for RM141.53 million, following a development rights agreement it signed in 2002 and 2003 with Johor Corp.

DAC Properties will pay RM130.3 million to Johor Corp for the 53-acre site. Damansara Realty will pay Johor Corp RM11.23 million for the remaining 10 acres of TDA Land, which comprises completed shop offices and undeveloped land.