Danga Bay JV to spur more cross-border transactions

Johor Menteri Besar Datuk Abdul Ghani Othman hopes joint-venture projects by Malaysia and Singapore companies in Danga Bay will help spur more cross-border transactions in Iskandar Malaysia.

Speaking during the signing ceremony of the Head of Agreement (HOA) between Iskandar Waterfront Sdn Bhd (IWSB), CapitaLand Ltd and Temasek Holdings today, he said the "big boys" in Singapore and across the region would take the cue from the historic event today.

"I am confident this will spur even more cross-border transactions as the "big boys" in Singapore and across the region will take the cue from Temasek and CapitaLand to explore more investment opportunities in Iskandar Malaysia," he said.

Prime Minister Datuk Seri Najib Razak and his Singapore counterpart Lee Hsien Loong and several cabinet ministers from the two countries witnessed the signing ceremony at the Danga Bay Convention Centre here.

The three joint-venture partners inked the HOA to jointly acquire and develop parcels of land in Danga Bay known as "A2 Island".

The joint venture will acquire 71.4 acres or 3.1 million square feet of freehold net land in A2 Island, Danga Bay, for a purchase price of RM811 million (S$324 million), which will be paid over a period of four-and-a-half-years.

CapitaLand Malaysia, a wholly-owned subsidiary of CapitaLand Ltd, IWSB and Temasek will hold 51 per cent, 40 per cent and nine per cent stakes, respectively, in the joint venture.

Ghani said Johor welcomed more Singapore government-linked companies to enter into joint ventures with IWSB and other local enterprises to tap the potential for property development that Iskandar Malaysia has to offer.

"This joint venture between a Johor entity and two of the island republic's biggest economic players will give confidence to others waiting on the sidelines that investment in Iskandar Malaysia is an opportunity not to be missed," he said.

He said Johor and Singapore enjoyed a long-standing, friendly and multi-faceted relationship that are bound by common history, intimate geography and deep abiding social ties.

The joint venture was an example of the new "feel good sentiment" now prevailing on both sides of the border, thanks to the hardwork of Najib and Hsien Loong in strengthening bilateral ties, he said.

"The 71.4 acres earmarked for mixed development under this joint venture is a prized location which has long been eyed by many local and foreign investors.

"But in keeping with true Malaysian hospitality, we've decided to give the best to our neighbours," he added.