By Sharen Kaur
UEM Sunrise Bhd and Kuala Lumpur Kepong Bhd (KLK), Malaysia's third biggest palm oil producer, will jointly develop two property projects in Iskandar Malaysia, generating RM20 billion in gross development value over 15 years.
The companies formalised separate agreements yesterday to form joint-venture companies and develop land parcels in Fraser Metropolis, which is part of KLK's Fraser Estate in Kulai, and Gerbang Nusajaya.
This is the first tie-up between both parties and also marks KLK's maiden venture into the Johor property market.
According to UEM Sunrise and KLK chiefs, they will be using internal funds and borrow from banks for the developments.
The Fraser Metropolis project involves the construction of residential, industrial and commercial properties worth RM15 billion on 1,000ha over 15 years. It will be developed by Aura Muhibah Sdn Bhd, which is 60 per cent owned by UEM Sunrise and the rest by KLK.
The project in Gerbang Nusajaya will be developed by Scope Energy Sdn Bhd, a 60:40 joint venture led by KLK. The project will see the development of residential and commercial properties worth RM5 billion over eight years on 200ha.
Aura Muhibah and Scope Energy will acquire the land parcels from UEM Sunrise and KLK, respectively, for the two projects.
UEM Sunrise chief operating officer (commercial) Raymond Cheah said the partnership was established to leverage on resources and enhance land value on both sides of Nusajaya and Kulai.
"Partnerships such as these increase foreign direct investments as we open valuable tracts of landbank and job creation is our key," he said after the signing ceremony yesterday.
Cheah said the projects will comprise both landed and high-rise units catering to all segments of the market.
In terms of target market, he said 50 per cent of UEM Sunrise buyers are locals, with the rest being investors from Japan, South Korea, Singapore and Indonesia.
UEM Sunrise executive director Datuk Izzaddin Idris said the company will recognise profits next year from the sale of the land parcel to Aura Muhibah and the launch of the projects.
"We expect to start construction in 18 months. We are in the process of getting all the approvals and appointing consultants. The faster we do this, the earlier we can launch," he said.
The companies formalised separate agreements yesterday to form joint-venture companies and develop land parcels in Fraser Metropolis, which is part of KLK's Fraser Estate in Kulai, and Gerbang Nusajaya.
This is the first tie-up between both parties and also marks KLK's maiden venture into the Johor property market.
According to UEM Sunrise and KLK chiefs, they will be using internal funds and borrow from banks for the developments.
The Fraser Metropolis project involves the construction of residential, industrial and commercial properties worth RM15 billion on 1,000ha over 15 years. It will be developed by Aura Muhibah Sdn Bhd, which is 60 per cent owned by UEM Sunrise and the rest by KLK.
The project in Gerbang Nusajaya will be developed by Scope Energy Sdn Bhd, a 60:40 joint venture led by KLK. The project will see the development of residential and commercial properties worth RM5 billion over eight years on 200ha.
Aura Muhibah and Scope Energy will acquire the land parcels from UEM Sunrise and KLK, respectively, for the two projects.
UEM Sunrise chief operating officer (commercial) Raymond Cheah said the partnership was established to leverage on resources and enhance land value on both sides of Nusajaya and Kulai.
"Partnerships such as these increase foreign direct investments as we open valuable tracts of landbank and job creation is our key," he said after the signing ceremony yesterday.
Cheah said the projects will comprise both landed and high-rise units catering to all segments of the market.
In terms of target market, he said 50 per cent of UEM Sunrise buyers are locals, with the rest being investors from Japan, South Korea, Singapore and Indonesia.
UEM Sunrise executive director Datuk Izzaddin Idris said the company will recognise profits next year from the sale of the land parcel to Aura Muhibah and the launch of the projects.
"We expect to start construction in 18 months. We are in the process of getting all the approvals and appointing consultants. The faster we do this, the earlier we can launch," he said.
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