More investment flows in for Medini

KUALA LUMPUR (Nov 11): Iskandar Investment Bhd (IIB) flagship development Medini in Johor has roped in local property developer Darul Tinggi Sdn Bhd for the development of a RM600 million high-rise condominium project in Medini.

The announcement came one week after IIB, the catalytic developer of Iskandar Malaysia, had successfully secured investments from Beijing-based property developer Zhuoda Group.

Both parties had agreed to set up a joint venture company Distinctive Resouces Sdn Bhd (DRSB) following the signing of a shareholders and subscription agreement and a development and lease purchase agreement between IIB's wholly-owned subsidiary Medini Land Sdn Bhd and DTSB. The company will be 80% owned by DTSB and 20% by Medini Land.

The condominium will be located in the heart of Medini North and is estimated to have a gross development value (GDV) of RM600 million.

The development for Medini will be implemented in two phases. Phase 1 of the project which involves 351 condominium units is scheduled to take place in Mid 2012 while the second phase of the project comprising the remaining 334 condominium units is expected to take place 20 months upon the completion of the first phase of the project.

"This new residential project would further add to the expansion of the development community at Medini-IIB's flagship development," said Datuk Syed Mohamed Syed Ibrahim, president/CEO of IIB in a statement on Friday.

"Looking at its strategic location, which is in close proximity to Legoland Malaysia and EduCity, we are optimistic that this condominium project would receive favourable response from potential investors and property buyers more so due to the multiplier effects from these two catalytic projects. This development which caters for both local and international property markets will also help to spin off other projects and thus bring vibrancy to the vicinity," he added.

DTSB founder Datuk Dr David Koh said "We are seeing an increasing number of people from outside the state buying properties in Johor Bahru."

Many property investors, he added, have shifted their focus towards Johor Bahru from Klang Valley.

Properties in Johor Bahru, especially those in Nusajaya are attracting attention because of Iskandar Malaysia, where the first wave of catalytic projects and major infrastructures have either been completed or on schedule for completion by 2012. The projects include Legoland Malaysia, Newcastle University Medicine Malaysia, Marlborough College, University of Southampton Malaysia Campus, Netherlands Maritime Institute of Technology, Johor Premium Outlet and the Urban and Wellness Resort (a joint-venture between Khazanah Nasional Bhd and Temasek Holdings), while infrastructure includes the Coastal Highway, which connects Johor Bahru city centre to Nusajaya, and the Eastern Dispersal Link.

"The sight of all these projects nearing completion or already completed proves that this is no longer a dream but that things are actually coming to fruition after just five years," he added.

IIB is the commercial arm of the government that has been formed to spearhead the development and transformation of Iskandar Malaysia. It oversees the development of 387,500,775 sq ft (approximately two per cent) of land in Iskandar Malaysia. Their landbanks are located in close proximity to Singapore as well as Johor's logistics hubs, namely the Senai Airport and the international ports of Tanjung Langsat, Pasir Gudang and Tanjung Pelepas.