UEM Sunrise-Mulpha’s RM5bil joint venture in Iskandar

Joining forces: (From left) Mulpha general manager David Choa Der Huay, CFO Eric Lee Eng Leong, executive chairman Lee Seng Huang, UEM Group Bhd group MD/CEO Datuk Izzaddin Idris, Anwar Syahrin and Cheah at the signing ceremony.

KUALA LUMPUR: Two property developers with interests in Johor, UEM Sunrise Bhd and Mulpha International Bhd, have entered into a joint venture (JV) to develop three parcels of land with a gross development value (GDV) of RM5bil near the Malaysia-Singapore second link in Iskandar Malaysia.

The companies have an equal share in a JV company to develop the multi-billion-ringgit project for up to 20 years.

The landbank to be developed under the JV include 129.79 acres belonging to UEM Sunrise in Gerbang Nusajaya in Mukim Tanjung Kupang, and 65.48 acres belonging to Mulpha in Mukim Pulai that will be converted for commercial use.

These parcels are also located next to Leisure Farm, a 1,765-acre gated project owned by Mulpha.

The JV will see both companies capitalising on each other’s strengths and expertise to tap integrated synergies, with Mulpha leading the design and planning of UEM Sunrise’s land, while UEM Sunrise will focus on tapping its strengths for developing mixed-use developments to lead and plan the development of Mulpha’s land.

“We are excited to be expanding our synergistic collaboration with Mulpha that will integrate both our respective Gerbang Nusajaya and Leisure Farm master plans towards our goal of transforming Gerbang Nusajaya, the second wave of development of Iskandar Puteri, into an attractive and highly liveable area,” UEM Sunrise managing director and chief executive officer Anwar Syahrin Abdul Ajib told a press conference here to announce the partnership.

On concerns that the JV was being announced when the outlook was challenging for Iskandar properties, UEM Sunrise chief operating officer Raymond Cheah said at the press conference that “this was mainly a landed property development”.

“If you enter Leisure Farm, you would think you are in another country. It is quite sought after in terms of available bungalow lots. The concept is well-planned and managed,” Cheah said.

“According to consultants, the most important thing for a successful development is that it should be well-planned. If you are friendly with your neighbours, you can even control supply. We hope to control supply, therefore we can mitigate risks in terms of saleability and price points,” he added.

The first phase of the JV project will be launched in 2018 and there will 12 phases in total.

“The first phase with a GDV of RM150mil will likely be the super link and semi-Ds that are next to Leisure Farm. While on the Gerbang side, it would likely be shophouses to support the industries there. There will also be affordable housing in Gerbang,” Cheah said.