JOHOR BARU — Master developer, Iskandar Waterfront Sdn Bhd (IWSB), today signed a joint-venture agreement with two Singapore-based companies to acquire and develop 71.4 acres of land in Danga Bay for a mixed integrated development worth RM8.1 billion in gross development value (GDV)
The agreement was entered into with one of Asia’s largest real estate companies, CapitaLand Malaysia Pte Ltd, and Temasek Holdings, an investment company owned by the Singapore government.
The signing ceremony was witnessed by Prime Minister Najib Razak and his Singapore counterpart Lee Hsien Loong and Johor Menteri Besar Abdul Ghani Othman.
IWSB Managing Director Lim Kang Hoo said a special purpose vehicle (SPV) will be formed to spearhead the development of the land valued at RM811 million.
He said IWSB, CapitaLand and Temasek will jointly hold 40 percent, 51 percent and nine per cent equity respectively in the joint venture.
CapitaLand will take the lead in refining the master planning and development of the land.
The development blueprint will include high-end condominiums, service apartments, commercial office blocks, retail outlets and landed residential units.
To be developed in phases, the project is expected to be fully completed in the next 10 to 12 years, Lim said, adding that the first phase is scheduled to begin early next year.
On funding, he said: “It could be through bank borrowings or internally-generated funds or both. It depends on shareholders, they will decide later.
“The funding will probably come in the middle of next year when the master plan has been revised and then we will know what other things that we need to fund.”
Lim said a lot of job opportunities would be created via this project and was confident that it would contribute positively to the growth of Johor Baru.
“When we bring in the world’s well-known architect to do the master planning and at the same time involve big companies like CapitaLand and Temasek, more developers will come in later.
“So, this will definitely create a very big spillover to the Johor Baru area. It will benefit professionals like accountants, consultants, architects, contractors, suppliers, restaurants and hotels,” he said.
Asked on claims of high ownership of land by foreigners, Lim said mega projects such as these needed large investment funds and many of the injection of funds came from foreign investors.
“With a project of this size, we will need foreign direct investments. We need foreigners to come and participate,” he said, adding that the development in Johor Baru was more than 60 per cent contributed by local players.
IWSB is a government-linked company that was specifically incorporated to serve as the master developer of 4,000 acres of prime waterfront land in Johor Baru.
This massive development will be undertaken in phases over a 25-year period with a projected GDV of RM60 billion.
IWSB is actively seeking strategic local and foreign partners to develop high-impact projects and create new business and tourist destinations within its proposed waterfront city.