Motorsports City to boost Iskandar sales
PETALING JAYA: Analysts are positive on the announcement made by UEM Land Holdings Bhd to develop a Motorsport City with Singapore billionaire Peter Lim and feel it is a catalyst for better property sales and an increase in the population of the Iskandar Development region.
While some of the projects, such as the building of the China Mall, are still in the feasibility stage, analysts say it signifies the stronger viability of the Iskandar development region, and would now feature more strongly on the radar of investors and create 5,000 new jobs.
“We regard the new development as catalytic and beneficial for UEM Land's property sales. The announcement has come at a good time for UEM Land, given that management has conceded they are unable to meet their RM3bil sales target for the financial year ended Dec 31, 2012 with nine-month sales as at September at RM1.2bil,” said Hong Leong property analyst Sean Lim.
He added that the entry of Peter Lim was definitely positive as it would attract the Singaporean high society crowd to Johor.
“The Motorsport City will cater for the rich Singaporeans who have no place to drive their Lamborghinis and Ferraris,” said Lim.
On Tuesday, UEM Land announced that it had entered into a joint venture agreement to develop the Motorsport City with FASTrack Autosports Private Ltd, with a special purpose vehicle acquiring 270 acres in Gerbang Nusajaya for RM223.5mil (RM19 psf) to develop the project. The equity ratio of the joint venture company will be 30:70 between UEM Land and FASTrack. The total gross development value (GDV) of Motorsport City is about RM3.5bil, comprising components such as showrooms, automotive retail, workshop, a 5km test track, go-kart track and other automotive related trades and activities. Some 30% of the total GDV are residential components, mainly service apartments.
It has also entered into a memorandum of understanding with Chinamall Holdings Pte Ltd to co-operate in the development of China Mall, a trade and exhibition centre in Gerbang Nusajaya. UEM Land will develop and own the mall while Chinamall Holdings will be the master tenant.
Thirdly, a collaborative agreement was signed between UEM Land, Iskandar Investment Bhd (IIB) and Telekom Malaysia Bhd (TM) on the provision of communication and ICT infrastructure and telecommunication services.
Source : The Star
Date : 6 December 2012
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