Damansara Realty Bhd has formed a joint venture (JV) with Country Garden Holdings Co Ltd, a China-based property developer, to develop 53 acres of freehold Johor land in Johor Bahru JB into an integrated township called Central Park.
Iskandar project Central Park by Country Garden and Damansara Realty (Photo credit: The Edge Property)
The JV called DAC Properties Sdn Bhd will pay state-controlled Johor Corp RM130.3 million for the Johor land while Damansara Realty is to pay an additional RM11.23 million for the remaining 10 acres of the total 63-acre site, which the property group will acquire for RM141.53 million following a development rights agreement signed in 2002 and 2003.
Damansara Realty will hold a 30% stake in DAC and Country Garden will hold the remaining 70% via Country Garden Management Sdn Bhd.
“This partnership represents a significant opportunity for Damansara Realty to execute a large-scale Iskandar project alongside with one of China’s most reputable developers Country Garden. We expect Central Park to generate a significant and steady stream of income to the group over the next few years,” Damansara Realty executive vice chairman Datuk Daing A Malek Daing A Rahaman noted in a statement last Friday.
Daing A Malek said the township development in Iskandar Malaysia will also create significant employment opportunities for Johor’s residents and local economy.
Country Garden regional president Fu Jinling said the Iskandar project’s township development is targeted towards the state’s “dynamic” and “vibrant” population.
“Malaysia has always been a key market for us. We see a lot of potential particularly in JB, where other major developments are taking place. The city is poised to become an international metropolis, and we are proud to be a part of its transformation,” Fu said.
The Iskandar project township development located in Johor’s Tebrau district is targeted at young home buyers in the country and will compromise residential units, commercial lots and various amenities.
Central Park @ Tebrau will be developed over six to eight years and will commence by the fourth-quarter (4Q16) of this year with the first phase to be launched in 1Q17.
Damansara Realty is currently involved in two property projects in Putrajaya and Kuantan, with a gross development cost of RM467.3 million and a 500-acre landbank respectively, while it secured a RM124 million contract for works on the Petronas Refinery and Petrochemical Integrated Development complex in Pengerang last month.
The another major projects in Johor for Country Garden, which is developing Forest City, a real estate project with a total gross development value of over RM250 billion near to Secon Link and Singapore, while working on Iskandar project in Danga Bay and Country Garden Diamond in Kuala Lumpur.
The JV is subject to the approval of Damansara Realty’s shareholders and relevant authorities in Malaysia. Once it is approved, it will be another major iskandar project development in Iskandar Malaysia.