UEM Sunrise Bhd and Kuala Lumpur Kepong Bhd (KLK) will jointly develop two mixed property development in Gerbang Nusajaya and Fraser Metropolis in Johor with a gross development value (GDV) of RM20 billion.
The joint venture (JV) will be undertaken by UEM Sunrise’s unit, UEM Land Bhd and KLK Land Bhd, a unit of KLK.
The development will involve two parcels of land measuring 1,200 hectares (ha) worth RM1.74 billion, said UEM Sunrise Executive Director Datuk Izzadin Idris Friday.
The land located in Gerbang Nusajaya will be developed by Scope Energy Sdn Bhd, a 60:40 JV between KLK Land and UEM Land, respectively.
The land in Fraser Metropolis will be developed by Aura Muhibah Sdn Bhd and will be owned 60:40 by UEM Land and KLK Land, respectively.
Speaking to the reporters here, UEM Sunrise Chief Operating Officer Raymond Cheah said the development components would include homes catering to all segments of the market, from affordable right up to the high-end.
The proposed development in Gerbang Nusajaya will comprise affordable housing and an entertainment hub for motor sport while Fraser Metropolitan will consist of residential, industrial and commercial components.
Launches for the properties are expected to take place in the second half of next year, pending master planning and development approvals.
The planned development in Gerbang Nusajaya, covering 202.3ha, is estimated to generate a GDV of RM5 billion over eight years.
“We expect about 50 per cent of our target market to be Malaysian and the other 50 per cent to be foreigners mainly from Japan, Korea and Singapore,” he said.
For the proposed development in Fraser Metropolis, the group plans to construct residential, industrial and commercial components on a 1,010ha with an estimated GDV of RM15 billion.
UEM Sunrise will also enhance its land bank supply with more prime assets to accelerate the group’s future growth trajectory.
UEM Sunrise Bhd, formerly known as UEM Land Holdings, aims to garner RM3 billion in sales by the end of the year, from RM2.8 billion registered last year.