By Sharen Kaur
THE warming bilateral relations between Singapore and Malaysia can only bode well for the country, with huge investments pouring in.
Both countries achieved economic milestones with the announcement of the high-speed rail network linking Kuala Lumpur and Singapore and the mass rapid transit link from Johor Baru to Woodlands.
There is also the largest joint-venture project in Malaysia by Temasek Holdings (Private) Ltd and CapitaLand Ltd. Temasek is the sovereign wealth fund of the government of Singapore while CapitaLand is one of Asia's largest real estate companies.
For CapitaLand, its two core markets are Singapore and China, while Indonesia, Vietnam and Malaysia have been identified as new growth markets.
Besides Singapore, Malaysia receives huge investments from China, Vietnam, Hong Kong, Europe and the United States.
Bloomberg has rated Malaysia as the world's fifth most promising emerging market this year, the only Asean country in its top 10 list.
Malaysia is ranked alongside Asia's developed markets, such as Japan, Hong Kong and Singapore, by the Asian Corporate Governance Association.
The co-founder of Transparency International, Michael Hershman, has praised Malaysia as "a friendly country to do business in".
Apart from Temasek and CapitaLand, Singapore tycoon Peter Lim is also investing heavily in the multibillion-ringgit Motorsports City project in Gerbang Nusajaya, Iskandar Malaysia. It will include a Formula One-compliant racing test track as well as showrooms, garages and entertainment outlets spread over 109ha.
There are also investments by Pulau Indah Ventures Sdn Bhd - a 50:50 joint venture between Khazanah Nasional Bhd and Temasek - which is developing the multibillion-ringgit "Urban Wellness" project, a 2ha site in Medini North; and the "Resort Wellness" development, a 85ha site in Medini Central, both located in Iskandar Malaysia, Johor.
Meanwhile, t he investment amount of RM811 million from CapitaLand marks the group's first direct large-scale township investment and development in Malaysia.
Temasek and CapitaLand will develop a S$3.2 billion (RM8.6 billion) township in Danga Bay, one of five flagship zones in Iskandar Malaysia, and about 10km from the Johor Causeway.
The 29ha site will be turned into a waterfront residential community comprising high-rise and landed homes, as well as a marina a shopping mall, restaurants, serviced residences, offices and recreational facilities.
But that is not all from CapitaLand, which has been expanding its presence here through its wholly-owned serviced residence business unit, The Ascott Limited, since a few years ago.
It also counts CapitaMalls Malaysia Trust (CMMT) as among its listed real estate investment trusts.
CMMT, which was listed on the Main Market of Bursa Malaysia on July 16 2010, is Malaysia's only "pureplay" shopping mall REIT with an income-and geographically-diversified portfolio.
It has a market capitalisation of more than RM2.5 billion and its portfolio - comprising Gurney Plaza in Penang, an interest in Sungei Wang Plaza here, The Mines in Selangor and East Coast Mall in Kuantan - has been independently valued at about RM3.2 billion.
The manager of CMMT is Capita-Malls Malaysia REIT Management Sdn Bhd, which is 70 per cent owned by CapitaLand Retail RECM Pte Ltd and the rest by Malaysian Industrial Development Finance Bhd.
Munwar Basha, who is Ascott area manager for Malaysia, said the group was increasing both its investment and presence in the country.
"Demand for quality accommodation in Malaysia has been growing strongly as the country continues to attract foreign direct investment. We will continue to seek opportunities to expand and strengthen our leadership position in Malaysia," he told Property Times.
In 2014, Malaysia's foreign direct investment grew more than eight per cent to RM64.6 billion from 2013.
Munwar said Ascott had expanded its presence in Sabah and Sarawak by securing a management contract for a 253-unit serviced residence - Citadines Waterfront Kota Kinabalu in Sabah.
It would be the first international brand of serviced residence in Sabah when the property opens in early 2018, he said.
Munwar said with the management contract, Ascott reinforced its lead as the largest international serviced residence owner-operator in Malaysia with over 2,000 apartment units across 10 properties in Malaysia.
Ascott currently operates six properties here, namely Ascott Kuala Lumpur, Ascott Sentral Kuala Lumpur, Somerset Ampang Kuala Lumpur, Citadines DPulze Cyberjaya, Somerset Puteri Harbour Nusajaya and Citadines Uplands Kuching.
It will open four more by 2019, including the property in Kota Kinabalu. The rest are Somerset Medini Nusajaya by Pulau Indah Ventures Sdn Bhd, which is a joint venture between Khazanah Nasional Bhd and Temasek; Somerset Damansara Uptown Petaling Jaya by See Hoy Chan Sdn Bhd, and Citadines Medini Nusajaya by United Malayan Land Bhd.
Citadines Waterfront Kota Kinabalu is part of an integrated development that includes a retail mall with supermarket, food and beverage outlets as well as offices.
The project is owned by Titijaya Land Bhd while Ascott is only managing the serviced residence component, which has a gross development value of RM97 million.
"We will invest if we see value in having a serviced residence in a certain location. The investment amount will depend on the opportunity available. Different cities and locations will have different cost structures pertaining to land, properties and even construction cost," Munwar said.
THE warming bilateral relations between Singapore and Malaysia can only bode well for the country, with huge investments pouring in.
Both countries achieved economic milestones with the announcement of the high-speed rail network linking Kuala Lumpur and Singapore and the mass rapid transit link from Johor Baru to Woodlands.
There is also the largest joint-venture project in Malaysia by Temasek Holdings (Private) Ltd and CapitaLand Ltd. Temasek is the sovereign wealth fund of the government of Singapore while CapitaLand is one of Asia's largest real estate companies.
For CapitaLand, its two core markets are Singapore and China, while Indonesia, Vietnam and Malaysia have been identified as new growth markets.
Besides Singapore, Malaysia receives huge investments from China, Vietnam, Hong Kong, Europe and the United States.
Bloomberg has rated Malaysia as the world's fifth most promising emerging market this year, the only Asean country in its top 10 list.
Malaysia is ranked alongside Asia's developed markets, such as Japan, Hong Kong and Singapore, by the Asian Corporate Governance Association.
The co-founder of Transparency International, Michael Hershman, has praised Malaysia as "a friendly country to do business in".
Apart from Temasek and CapitaLand, Singapore tycoon Peter Lim is also investing heavily in the multibillion-ringgit Motorsports City project in Gerbang Nusajaya, Iskandar Malaysia. It will include a Formula One-compliant racing test track as well as showrooms, garages and entertainment outlets spread over 109ha.
There are also investments by Pulau Indah Ventures Sdn Bhd - a 50:50 joint venture between Khazanah Nasional Bhd and Temasek - which is developing the multibillion-ringgit "Urban Wellness" project, a 2ha site in Medini North; and the "Resort Wellness" development, a 85ha site in Medini Central, both located in Iskandar Malaysia, Johor.
Meanwhile, t he investment amount of RM811 million from CapitaLand marks the group's first direct large-scale township investment and development in Malaysia.
Temasek and CapitaLand will develop a S$3.2 billion (RM8.6 billion) township in Danga Bay, one of five flagship zones in Iskandar Malaysia, and about 10km from the Johor Causeway.
The 29ha site will be turned into a waterfront residential community comprising high-rise and landed homes, as well as a marina a shopping mall, restaurants, serviced residences, offices and recreational facilities.
But that is not all from CapitaLand, which has been expanding its presence here through its wholly-owned serviced residence business unit, The Ascott Limited, since a few years ago.
It also counts CapitaMalls Malaysia Trust (CMMT) as among its listed real estate investment trusts.
CMMT, which was listed on the Main Market of Bursa Malaysia on July 16 2010, is Malaysia's only "pureplay" shopping mall REIT with an income-and geographically-diversified portfolio.
It has a market capitalisation of more than RM2.5 billion and its portfolio - comprising Gurney Plaza in Penang, an interest in Sungei Wang Plaza here, The Mines in Selangor and East Coast Mall in Kuantan - has been independently valued at about RM3.2 billion.
The manager of CMMT is Capita-Malls Malaysia REIT Management Sdn Bhd, which is 70 per cent owned by CapitaLand Retail RECM Pte Ltd and the rest by Malaysian Industrial Development Finance Bhd.
Munwar Basha, who is Ascott area manager for Malaysia, said the group was increasing both its investment and presence in the country.
"Demand for quality accommodation in Malaysia has been growing strongly as the country continues to attract foreign direct investment. We will continue to seek opportunities to expand and strengthen our leadership position in Malaysia," he told Property Times.
In 2014, Malaysia's foreign direct investment grew more than eight per cent to RM64.6 billion from 2013.
Munwar said Ascott had expanded its presence in Sabah and Sarawak by securing a management contract for a 253-unit serviced residence - Citadines Waterfront Kota Kinabalu in Sabah.
It would be the first international brand of serviced residence in Sabah when the property opens in early 2018, he said.
Munwar said with the management contract, Ascott reinforced its lead as the largest international serviced residence owner-operator in Malaysia with over 2,000 apartment units across 10 properties in Malaysia.
Ascott currently operates six properties here, namely Ascott Kuala Lumpur, Ascott Sentral Kuala Lumpur, Somerset Ampang Kuala Lumpur, Citadines DPulze Cyberjaya, Somerset Puteri Harbour Nusajaya and Citadines Uplands Kuching.
It will open four more by 2019, including the property in Kota Kinabalu. The rest are Somerset Medini Nusajaya by Pulau Indah Ventures Sdn Bhd, which is a joint venture between Khazanah Nasional Bhd and Temasek; Somerset Damansara Uptown Petaling Jaya by See Hoy Chan Sdn Bhd, and Citadines Medini Nusajaya by United Malayan Land Bhd.
Citadines Waterfront Kota Kinabalu is part of an integrated development that includes a retail mall with supermarket, food and beverage outlets as well as offices.
The project is owned by Titijaya Land Bhd while Ascott is only managing the serviced residence component, which has a gross development value of RM97 million.
"We will invest if we see value in having a serviced residence in a certain location. The investment amount will depend on the opportunity available. Different cities and locations will have different cost structures pertaining to land, properties and even construction cost," Munwar said.
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