MIXED INTEGRATED DEVELOPMENT: Gross development value of first phase is estimated at between RM300m and RM350m
SUNWAY Bhd targets to launch its first property project in Medini, Iskandar Malaysia, in January next year.
Its chief financial officer Chong Chang Choong said the first phase will be a mixed integrated development comprising serviced apartments, office suites and retail units.
“The gross development value (GDV) of this first phase is estimated at between RM300 million and RM350 million,” he told reporters after his presentation at the MIDF luncheon talk here yesterday.
Chong said a series of other project launches in Iskandar are being planned for next year.
Sunway is the owner of over 700ha of land in Iskandar, which it bought late last year.
The total GDV of its massive project there is about RM30 billion and it will keep the company busy for the next 15 to 20 years.
When fully completed, 60 per cent of the project would constitute residential units, while commercial buildings would account for the remaining 40 per cent.
“We are estimating a total built-up area of 77 million square feet with a total population of 150,000 upon the completion of our projects in Iskandar,” he said.
Earlier in his presentation, Chong spoke on Sunway’s optimism over the prospects of Iskandar, especially for property developers.
“We are confident that Iskandar will be a very successful economic corridor and we foresee in the coming years, commercial activities will shift from Johor Baru to the west towards Nusajaya and Medini.”
With close proximity to Singapore and the island state’s active participation in the Iskandar development, he said Sunway anticipates a lot of economic activities at the land very near to the causeway and the second link to Singapore.
Chong said Sunway is confident that it could replicate the successof its Bandar Sunway project in Iskandar although the latter will be a township of international stature.
He added that the proposed high-speed train between Kuala Lumpur and Singapore, the plan to extend Singapore’s MRT to Tuas and a bus service to Medini, will undoubtedly augur well for Iskandar’s prospects.
Sunway has expanded its landbank in Johor with an acquisition of 691 acres in Medini Iskandar, via a joint-venture with Khazanah Nasional Bhd. With an estimated gross development value of RM12 billion, the Medini project will be transformed into an integrated development similar to Sunway Resort City in Selangor, incorporating a healthy mix of leisure, hospitality, entertainment, healthcare, education institutions, businesses, retail attraction
The GDV for the entire Sunway Iskandar project is some RM30 billion.
“What we plan is a mixed integrated development, a 3-in-1 comprising serviced apartments, office suites and a retail podium,” he told reporters at the MIDF Luncheon Talk yesterday.
The group intends to replicate its Bandar Sunway project success at Sunway Iskandar, with components encompassing an education hub, a theme park, a shopping mall, hotels, offices and hospitals.
“We want it to be a self-sustaining suburban development. This project gives us the chance to recreate a township of international stature and avoid the mistakes we (made) previously,” he said.
Chong added that the first phase will only take up “a few acres” of the total 1,800 acres that Sunway owns in Medini and Pendas in Iskandar Malaysia.
Chong said the group plans to launch more phases in Sunway Iskandar next year.
“If response (take-up rate) is good, we’ll be a bit more aggressive to meet the demand.”
On new land acquisitions in Johor, Chong said Sunway will consider opportunities that are similar to the land it acquired in Medini and Pendas.
“At the moment, 1,800 acres is a sizeable land size. If we do make any further acquisitions it will be something complementary to our existing development there. Based on our plan, 1,800 acres will last us between 15 and 20 years,” he added.
Chong said the group is bullish on the prospects of Iskandar Malaysia due to its property sector’s potential for the medium- to long-term.
He said out of the five corridors launched by the government in 2006, Iskandar Malaysia has been the centre of attraction due to its close proximity to Singapore and Changi Airport, connectivity via highways, the government’s investment of over RM4 billion on infrastructure, the huge discount on property prices compared with Singapore as well as collaborative efforts between the two governments of Malaysia and Singapore to develop the corridor.
“The buy-in of the Singapore government has also led to investor confidence improving and the momentum has increased,” he added.
Stay tuned here for more Sunway Medini updates……