"Control" Release

"Control" Release

Controlled release’ of land in Iskandar timely

MAINTAIN: Slow release timely to maintain value for investors

News that Iskandar Investment Bhd (IIB) will put off further land sales in Iskandar Malaysia for the time being hardly caused a stir in the market judging by the lack of follow-up response. Following the signing of two property deals with private developers worth a combined RM4.6 billion in gross development value (GDV), IIB president and chief executive officer (CEO) Datuk Syed Mohamed Ibrahim has reportedly said they will not be selling at the moment.

Calling this strategy a “controlled release”, the CEO said they needed to maintain a limited number of developments there in order for their “investors to make money”. At the same time, Syed Mohamed said Iskandar is still a “relatively small and fragile” region.

Commenting on the sale moratorium, Wee Soon Chit, Executive Director of Landserve (Johor) Sdn Bhd, said that as far as he knows, IIB has always been very selective on who their buyer is. He believes if there is a premium developer waiting to come in, they would still re-consider.

“I believe it is good to control now. Even UEM Land Holdings Bhd has not been openly selling land now. As it is, there are so many mixed developments with plot ratio of 1:6 that are under construction or planning. I feel it is timely to control now before it is too late,” said Wee.

According to him, Iskandar is now in the middle of Phase 2 which is the “Strengthening and Growth” phase that is projected to go on till 2015. This is the stage when the investment target based on IRDA’s (Iskandar Regional Development Authority) projections is US$24 billion (RM76.3 billion) and when there is a steep curve indicating a spurt of growth in developments. Between 2016 and 2025, the region will undergo Phase 3 which focuses more on progressive and sustainable developments.

IIB is an arm of Khazanah Nasional Bhd and the Johor state government which facilitates investments into the state’s economy.

On a separate note, the final report on the study of the high-speed rail (HSR) project between Malaysia and Singapore is expected to be completed by the end of July. With expected average speed of between 350 to 450 kph, the HSR will take only 90 mins to reach KL from Singapore.

Source: New Straits Times

‘Controlled release’ of land in Iskandar timely

MAINTAIN: Slow release timely to maintain value for investors

News that Iskandar Investment Bhd (IIB) will put off further land sales in Iskandar Malaysia for the time being hardly caused a stir in the market judging by the lack of follow-up response. Following the signing of two property deals with private developers worth a combined RM4.6 billion in gross development value (GDV), IIB president and chief executive officer (CEO) Datuk Syed Mohamed Ibrahim has reportedly said they will not be selling at the moment.

Calling this strategy a “controlled release”, the CEO said they needed to maintain a limited number of developments there in order for their “investors to make money”. At the same time, Syed Mohamed said Iskandar is still a “relatively small and fragile” region.

Commenting on the sale moratorium, Wee Soon Chit, Executive Director of Landserve (Johor) Sdn Bhd, said that as far as he knows, IIB has always been very selective on who their buyer is. He believes if there is a premium developer waiting to come in, they would still re-consider.

“I believe it is good to control now. Even UEM Land Holdings Bhd has not been openly selling land now. As it is, there are so many mixed developments with plot ratio of 1:6 that are under construction or planning. I feel it is timely to control now before it is too late,” said Wee.

According to him, Iskandar is now in the middle of Phase 2 which is the “Strengthening and Growth” phase that is projected to go on till 2015. This is the stage when the investment target based on IRDA’s (Iskandar Regional Development Authority) projections is US$24 billion (RM76.3 billion) and when there is a steep curve indicating a spurt of growth in developments. Between 2016 and 2025, the region will undergo Phase 3 which focuses more on progressive and sustainable developments.

IIB is an arm of Khazanah Nasional Bhd and the Johor state government which facilitates investments into the state’s economy.

On a separate note, the final report on the study of the high-speed rail (HSR) project between Malaysia and Singapore is expected to be completed by the end of July. With expected average speed of between 350 to 450 kph, the HSR will take only 90 mins to reach KL from Singapore.

Source: New Straits Times

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