Phase 1 of Sunway Iskandar to be launched by end-2013
Posted on 23 May 2013 - 05:39am
Eva Yeong
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KUALA LUMPUR (May 23, 2013): Sunway Bhd will launch Phase 1 of its Sunway Iskandar project in Medini, Iskandar Malaysia with a gross development value (GDV) of up to RM350 million by early next year, said its CFO Chong Chang Choong.
The GDV for the entire Sunway Iskandar project is some RM30 billion.
"What we plan is a mixed integrated development, a 3-in-1 comprising serviced apartments, office suites and a retail podium," he told reporters at the MIDF Luncheon Talk yesterday.
The group intends to replicate its Bandar Sunway project success at Sunway Iskandar, with components encompassing an education hub, a theme park, a shopping mall, hotels, offices and hospitals.
"We want it to be a self-sustaining suburban development. This project gives us the chance to recreate a township of international stature and avoid the mistakes we (made) previously," he said.
Chong added that the first phase will only take up "a few acres" of the total 1,800 acres that Sunway owns in Medini and Pendas in Iskandar Malaysia.
Chong said the group plans to launch more phases in Sunway Iskandar next year.
"If response (take-up rate) is good, we'll be a bit more aggressive to meet the demand."
On new land acquisitions in Johor, Chong said Sunway will consider opportunities that are similar to the land it acquired in Medini and Pendas.
"At the moment, 1,800 acres is a sizeable land size. If we do make any further acquisitions it will be something complementary to our existing development there. Based on our plan, 1,800 acres will last us between 15 and 20 years," he added.
Chong said the group is bullish on the prospects of Iskandar Malaysia due to its property sector's potential for the medium- to long-term.
He said out of the five corridors launched by the government in 2006, Iskandar Malaysia has been the centre of attraction due to its close proximity to Singapore and Changi Airport, connectivity via highways, the government's investment of over RM4 billion on infrastructure, the huge discount on property prices compared with Singapore as well as collaborative efforts between the two governments of Malaysia and Singapore to develop the corridor.
"The buy-in of the Singapore government has also led to investor confidence improving and the momentum has increased," he added.
Nevertheless, Sunway's maiden project in Johor is that of a 88-acre plot of land it owns in Taman Molek, near Johor Baru city comprising 50 to 100 units of bungalows in a gated and guarded community, which it plans to launch by July this year.
"It is a brownfield development, located next to existing residential units. Based on (initial) registration, there is strong interest from locals who are upgrading. This will be Sunway's maiden launch in Johor," said Chong.
The units will be priced between RM1.3 million and RM1.5 million.
