IWH inks RM900m deal with Country Garden

JOHOR BARU: Iskandar Waterfront Holdings Sdn Bhd (IWH) is a step closer to transforming the waterfront of Johor after inking a RM900 million land deal with Country Garden Holdings Co Ltd, one of China’s biggest property developers.

The deal entails IWH selling to Country Garden 11ha of prime waterfront land in Danga Bay for the latter to develop a mixed property project with a gross development value of RM18 billion, with work to start next year.

“We are very confident and upbeat about the business outlook in Iskandar Malaysia andare very happy to be among the first from China to invest in a big way in the southern growth corridor,” said Country Garden founder and chairman Yeung Kowk Keung.

Yeung, a prominent property tycoon in China, was speaking at the signing of the land sale and purchase agreement with IWH. The signing was witnessed by Prime Minister Datuk Seri Najib Razak yesterday.

IWH was represented by its executive vice-chairman Tan Sri Lim Kang Hoo. Also present was Johor Menteri Besar Datuk Abdul Ghani Othman.

The transaction marks the first and biggest investment to date by an investor from China within Flagship “A” of Iskandar Malaysia, which covers the Johor Baru city centre.

IWH is 60% controlled by Lim via Credence Resources Sdn Bhd. Johor state-controlled Kumpulan Prasarana Rakyat Johor owns the balance 40%.

On the project, Yeung said: “We are planning an integrated modern development with several exclusive features for Malaysian, regional and international customers.”

To be developed in three phases, the project will see the construction of a luxury clubhouse, commercial tower, shopping mall and high-end serviced apartments under phase one, expected to cost RM2 billion.

Yeung said Country Garden has its own list of Chinese and international customers who are keen to snap up the properties.

The first phase is expected to complete by 2017, Yeung said, adding that Country Garden has its own list of Chinese and international customers who are keen to snap up the properties.

He said the development masterplan for the Danga Bay site includes a world-class marina, boardwalk, restaurants offering fine dining and sophisticated leisure and entertainment facilities.

This is in addition to luxury serviced apartments and high-end villas to be developed in the later stages.

Country Garden president and executive director Mo Bin said work on the project will start next year beginning with the park and club house.
Listed on the Hong Kong Stock Exchange, Country Garden is among China’s top 10 developers.

IWH is the master developer of some 1,620ha of waterfront land on the eastern and western sides of the Johor Causeway.

This article first appeared in The Edge Financial Daily, on Dec 5, 2012.