TEBRAU BAY ON TRACK TO BE MA­JOR AT­TRAC­TION

Iskan­dar Wa­ter­front City and Green­land ex­pect launch of first phase of com­mer­cial units soon

New Straits Times - - Business -

AHMAD FAIRUZ OTHMAN JO­HOR BARU news@nst.com.my

TEBRAU Bay, Iskan­dar Wa­ter­front City Bhd’s (IWC) joint-ven­ture (JV) de­vel­op­ment with China’s Green­land Group, will soon see the first phase of its com­mer­cial units be­ing launched.

IWC chair­man Datuk Ayub Mion said the project, lo­cated on 51.8ha of coastal land, was pro­gress­ing well and shap­ing up to be a ma­jor at­trac­tion in Jo­hor.

“IWC has at­trac­tive tracts of wa­ter­front land with de­vel­op­ments that are pro­gress­ing well.

“A prime ex­am­ple is our JV with Green­land to de­velop 51.8ha of wa­ter­front land in Jo­hor, fronting Sin­ga­pore.

“The sales gallery was launched at the end of last year, and the first re­tail units will be launched soon,” said Ayub in a state­ment af­ter IWC’s an­nual gen­eral meet­ing, here, yes­ter­day.

Green­land bought the land from IWC two years ago for RM2.4 bil­lion in one of the big­gest land deals by a lo­cal com­pany with a China group at the time. The deal kick-started the de­vel­op­ment of the RM3 bil­lion wa­ter­front city in Tebrau Bay on the east­ern cor­ri­dor.

Un­der Phase One of Tebrau Bay, there will be a snow world theme park, an opera house, a hospi­tal spe­cial­is­ing in Chi­nese tra­di­tional medicine and a school.

The deal in­volv­ing Tebrau Bay was Green­land’s sec­ond in­vest­ment in Iskan­dar Malaysia af­ter a RM600 mil­lion de­vel­op­ment on a 5.5ha site in Danga Bay with Iskan­dar Wa­ter­front Hold­ings Sdn Bhd (IWH).

On a sep­a­rate mat­ter, IWC said a merger agree­ment with hold­ing com­pany IWH, which was an­nounced on May 5, would lead to the set­ting up of one of the largest listed strate­gic mas­ter de­vel­op­ers on Bursa Malaysia.

“Sub­ject to share­holder ap­proval and all other reg­u­la­tory ap­provals, this (the merge agree­ment) will see IWH con­sol­i­dat­ing the group’s land­bank and as­sum­ing the list­ing sta­tus of IWC to es­tab­lish one of the largest listed strate­gic mas­ter prop­erty de­vel­op­ers on Bursa Malaysia,” it said.

Un­der the agree­ment, IWH will ac­quire the re­main­ing 61.7 per cent stake in IWC at an of­fer price of RM1.50 per IWC share, to be economies of scale and build­ing a dom­i­nant po­si­tion in the mar­kets we op­er­ate in. We hope to in­clude Thai AirAsia in our con­sol­i­dated ac­counts be­gin­ning the sec­ond quar­ter,” Fer­nan­des said in a state­ment.

AirAsia Group’s load fac­tor was up four points to 89 per cent in the first quar­ter. Op­er­a­tions in Malaysia, Thai­land, In­done­sia and the Philip­pines all re­ported higher load fac­tors in the pe­riod.

The group’s net gear­ing ra­tio con­tin­ues to show im­prove­ment quar­ter-on-quar­ter and year-onyear, down to 1.22 times at the sat­is­fied via is­suance of IWH shares on the ba­sis of one new IWH share for one ex­ist­ing IWC share.

There­after, IWH would as­sume IWC’s list­ing sta­tus. The merger scheme forms part of a ra­tio­nal­i­sa­tion and re­struc­tur­ing ex­er­cise un­der­taken by IWH to con­sol­i­date its land­bank to cre­ate greater syn­er­gies and economies of scale.

The pro­posed ra­tio­nal­i­sa­tion and re­struc­tur­ing will see the in­jec­tion of 1,457ha land with an open mar­ket value of RM4.3 bil­lion into IWH through de­fin­i­tive agree­ments with the re­spec­tive ven­dors, namely Tan Sri Lim Kang Hoo (IWH direc­tor-cum-ex­ec­u­tive vice-chair­man), Kumpu­lan Prasarana Rakyat Jo­hor Sdn Bhd (the in­vest­ment arm of the Jo­hor gov­ern­ment) and other state en­ti­ties within 60 days from the date of the merger agree­ment.

Upon com­ple­tion of the cor­po­rate ex­er­cise, IWH will have about 2,741ha land, here, with an es­ti­mated value of about RM30 bil­lion, as as­sessed by the ap­pointed in­de­pen­dent val­uers. end of first quar­ter from 1.33 times as at the end of fourth quar­ter last year, fol­low­ing the com­ple­tion of the cap­i­tal in­jec­tion ex­er­cise in Jan­uary.

“AirAsia Group is grow­ing fast this year, adding 29 new planes for a to­tal group fleet of 201 air­craft by year-end (127 ex­clud­ing as­so­ciates’ air­craft in Thai­land, In­dia and Ja­pan).

“This is the most number of air­craft we have added in four years, demon­strat­ing our con­fi­dence in the com­pet­i­tive en­vi­ron­ment in Asia,” he said. Amir Hisyam Rasid

BLOOMBERG PIC

AirAsia’s op­er­at­ing profit fell 16 per cent to RM391 mil­lion in the first quar­ter, mainly due to higher fuel ex­penses.

Datuk Ayub Mion

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.