CapitaLand to enter Joint Venture with Iskandar Waterfront and Temasek to Develop S$3.2 billion Project in Danga Bay, A2 Island
CapitaLand’s first direct large scale township investment and development in Malaysia
Singapore, 19 February 2013 - CapitaLand Malaysia Pte Ltd (“CapitaLand Malaysia”), Iskandar Waterfront Sdn Bhd (“IWSB”) and Temasek signed a Heads of Agreement (“Agreement”) today to jointly acquire and develop parcels of land in Danga Bay (“A2 Island”), located in one of the five flagship zones in Johor's Iskandar Malaysia. The detailed terms and conditions for the joint acquisition and development are to be agreed in due course. CapitaLand Malaysia is a wholly-owned subsidiary of CapitaLand Limited, one of Asia's largest real estate companies. This marks CapitaLand’s first direct large scale township investment and development in Malaysia.
Prime Minister of Malaysia, Datuk Seri Mohd Najib Tun Abdul Razak and Prime Minister of Singapore, Mr. Lee Hsien Loong witnessed the signing of the Agreement at a signing ceremony held in Danga Bay Convention Centre.
The joint venture will acquire 71.4 acres or 3.1 million square feet of freehold net land in A2 Island for a purchase price of RM811 million or approximately S$324 million. The land purchase price will be paid over a period of four and a half years, corresponding with the infrastructure and development phases. CapitaLand Malaysia, IWSB and Temasek will hold 51%, 40% and 9% stakes respectively in the joint venture.
CapitaLand Malaysia will undertake the lead in refining the master-planning and development of the 71.4 acres of net land on A2 Island. The project is expected to generate a total gross development value of approximately RM8.1 billion (equivalent of S$3.2 billion). A premier waterfront residential community comprising high rise and landed homes is envisaged on this island together with a central waterfront hub with a marina, shopping mall, F&B outlets/restaurants, serviced residences, offices and recreational facilities. The project with an estimated total gross floor area of 11 million square feet, is expected to be developed in phases over a period of 10-12 years. CapitaLand Malaysia will draw upon the Group’s multi-sector development and management capabilities in homes, offices, shopping malls and serviced residences to create a safe and desirable lifestyle destination.
Mr. Lim Ming Yan, President and Group CEO of CapitaLand Limited said: “Given the close proximity and the strong bilateral ties between Malaysia and Singapore, and the increasing investor confidence in Iskandar Malaysia, CapitaLand finds this a compelling investment opportunity in a new upcoming development region. This will be our first direct large scale township investment and development in Malaysia. CapitaLand is pleased to partner IWSB and Temasek for this new and exciting project. With the site’s strategic location - close to Johor Bahru city centre and accessible via the newly constructed Coastal Highway; with the Singapore-Malaysia Causeway to its east and just 29 kilometres away from Legoland and EduCity in the west, we are confident that the development will be attractive and well received by the market.”