UEM Sunrise, one of Malaysia’s top property developers and master developer of Iskandar Puteri (formerly known as Nusajaya), entered into a joint venture agreement with diversified investment conglomerate, Mulpha International Berhad, to develop three land parcels fronting the Malaysia-Singapore Second Link in Iskandar Malaysia on 16 February.
The JV Agreement was formalised by wholly-owned subsidiaries of UEM Sunrise and Mulpha - UEM Land Berhad and Leisure Farm Corporation Sdn Bhd respectively. UEM Land Berhad was represented by UEM Sunrise’s Managing Director/Chief Executive Officer, Anwar Syahrin Abdul Ajib; and Chief Operating Officer, Commercial, Raymond Cheah; while Leisure Farm Corporation Sdn Bhd (“Leisure Farm Corporation”) was represented by Mulpha’s Group Chief Financial Officer, Eric Lee and David Choa, Director of Leisure Farm.
Dato’ Izzaddin Idris, Group Managing Director/Chief Executive Officer of UEM Group Berhad who is also a Member of the Board of UEM Sunrise and Lee Seng Huang, Executive Chairman of Mulpha were present to witness the officiating of the partnership.
According to the JV Agreement, the two land parcels belonging to UEM Sunrise in Gerbang Nusajaya (Mukim Tanjung Kupang) is located next to the Leisure Farm, a 1,765 acres of gated development owned by Leisure Farm Corporation. Measuring approximately 129.79 acres (known as the “UEM Sunrise Land”) the lands are currently zoned as ‘Enterprise’ and will be converted to Residential and Commercial titles. On the other hand, the land parcel belonging to Mulpha (Mukim Pulai) measuring approximately 65.48 acres (known as the “Mulpha Land”) is a converted commercial land located next to Gerbang Nusajaya, a 4,551- acre second wave development in Iskandar Puteri master planned by UEM Sunrise. Both lands will be developed and managed by the 50:50 Joint Venture Company (“JV Co”) that will be established to facilitate the project management.
This collaboration will see both organisations capitalising on each other’s strength and expertise with Mulpha leading the design and planning of the UEM Sunrise Land while UEM Sunrise, being particularly strong in mixed-use developments will lead the design and planning of the Mulpha Land.
Both companies intend to undertake mixed-use developments comprising residential and commercial components on the three land parcels with a targeted combined gross development value (“GDV”) exceeding RM5 billion. The land parcels will be developed over a maximum period of 20 years, with planning to commence in second half of 2016; and are expected to contribute positively to the future earnings of both companies.
Commenting on the partnership, Anwar Syahrin Abdul Ajib, Managing Director/Chief Executive Officer of UEM Sunrise said, “We are excited to be expanding our synergistic collaboration with Mulpha that will not only allow both parties to leverage on each other’s strengths, but more importantly integrate both our respective Gerbang Nusajaya and Leisure Farm master plans that emphasise on liveability, connectivity and employment opportunities. This augurs well with our goal towards transforming Gerbang Nusajaya, the second wave development of Iskandar Puteri into an attractive, well-connected and highly liveable area”.
“By developing these land parcels that are strategically located fronting the Malaysia-Singapore Second Link, we are one step closer to achieving our vision of turning Gerbang Nusajaya into the commercial and business engine for Iskandar Puteri, and ultimately the economic gateway to Iskandar Malaysia,” Anwar added.
“This new JV reflects the increasing areas of collaboration between our two organisations and reinforces our commitment for long term value creation through our continuous re-investment in Iskandar Malaysia. For Mulpha, this follow on partnership marks the next phase of growth and evolution for Leisure Farm, our premier development in Malaysia. We are currently focusing on bringing Mulpha’s international skills in construction, infrastructure development, luxury property development and hospitality to this award-winning resort development of ours, and the execution of this JV Agreement will mean greater capital gains and value appreciation for our owners and investors alike,” said Lee Seng Huang, Executive Chairman of Mulpha.
Today’s JV comes on heels following the maiden collaboration by both companies in May 2014 that saw its respective subsidiaries Nusajaya Rise Sdn Bhd and Leisure Farm Corporation building and upgrading three sets of road works to improve accessibility to and from Gelang Patah, Gerbang Nusajaya and Leisure Farm, to better serve the needs of the communities.
In September 2014, UEM Sunrise and Mulpha, along with Iskandar Investment Berhad and Sunway Iskandar Development Sdn Bhd, entered into a collaboration agreement on the development of the final stretch of the Coastal Highway Southern Link. The 5.2km highway links UEM Sunrise’s Gerbang Nusajaya South Development directly to Mulpha’s Leisure Farm, hence providing a direct connection from the Malaysia-Singapore Second Link into Iskandar Puteri in Iskandar Malaysia. Upon completion in Q1 2017, it will provide greater connectivity with travelling time to Sultan Abu Bakar CIQ is within five minutes and approximately 20 minutes to reach Johor Bahru city centre.
