UMLand-UEM Sunrise JV to launch project by end-2016

ISKANDAR (Feb 4): Nusajaya Consolidated Sdn Bhd (NCSB), a 50:50 joint-venture (JV) company between United Malayan Land Bhd (UMLand) and UEM Sunrise Bhd, will be launching its mixed development, The Waves, in Puteri Harbour, Johor, by year-end.

The development, with gross development value (GDV) exceeding RM1 billion, will begin groundworks in the fourth quarter this year, pending the approval of its amended masterplan, said UMLand senior general manager Izhan Goh Abdullah.

“We had actually gotten the approval earlier, but we had to amend the master plan,” he said, adding that the approval for the amended plan is expected to be granted next month.

With the approval of the master plan, Izhan said the project is expected to be launched end-2016.

“Depending on how the property market performs in the second half of this year, we expect to launch it the earliest end-2016 or early 2017,” he said.

The project will be launched in phases, he added, with the first phase, comprising the low-rise apartment units and retail mall will be completed in three and a half years’ time. The remaining portion of the development will require an extra year to finish.

The Waves is a mixed development project comprising serviced apartments, a retail mall and a hotel. Izhan said the company is currently in talks with the Hyatt group, to be the operators of the hotel.

Meanwhile, he said NCSB is on the lookout for investors for the project.

“There was an interested party from Japan, who wanted to do a 3D theme park, which we thought could complement the nearby Hello Kitty theme park. However, we will have to wait for the approval of our master plan first,” said Izhan, adding that NCSB is still in talks with the party.

Izhan spoke during a media briefing organised by UMLand on the updates of its developments in the Iskandar region.

The group also updated on the progress of the Johor Halal Park development, a JV between UMLand and Johor state through the Johor Biotechnology & Biodiversity Corp (J-Biotech).

UMLand unit Tebrau Teguh Sdn Bhd’s chief executive officer Mohd Noor Abdul Salam told the media that the first phase of the development, which will be Malaysia’s first world-class halal integrated park, is progressing on track for completion by end-2016.

“Phase 1 of the Johor Halal Park, which began works in 2014, is now 45% complete and is on track to meet the end-2016 targeted completion date. We are committed to complete the physical building by December this year, and by the first quarter of 2017, we will secure the CCC (Certificate of Completion and Compliance),” he said.

The final phase of the development will include the J-Biotech HQ Scientific Halal & TCM Labs Centre of Excellence, which will support upstream research and development activities, and also a business hub.

Despite the overall dampened domestic market, Mohd Noor said that UMLand is confident in the project, as the halal park is expected to be a new catalytic development for the Iskandar region.

He added that there has been many inquiries by international parties on the project, including those from South Korea, Japan, China and Taiwan. He added that the weakened position of the ringgit against the US dollar makes it cheaper for foreign parties to invest in Malaysia.

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This article first appeared in The Edge Financial Daily, on Feb 4, 2016. Subscribe to The Edge Financial Daily here.