Shanghai-based developer Greenland Group, is planning to invest RMB 20 billion (US$3.3 billion) to develop a resort hotel and residential projects in southern Malaysia close to the border with Singapore, in the latest overseas move by one of China’s most aggressive real estate firms.
According to a statement on Friday from a Malaysian government agency, as well as a public announcement from Greenland on Sunday, the Global Fortune 500 real estate company will build the projects in Danga Bay, a seafront area of Johor Bahru state near the border with Singapore.
According to the Malaysian government, the projects will occupy a 60 hectare (150 acre) site nearby developments from other international developers including some of Greentown’s rivals from China.
Greentown Chairman Zhang Yuliang on Friday led a six-member delegation to finalise the deal with Iskandar Waterfront Holdings Sdn Bhd (IWH) for the development, according to an IWH spokesperson.
“Greenland’s forte is in mixed commercial development, including high-end hotels and residential towers. We expect them to bring their expertise and market knowledge to help build world-class waterfront properties in Danga Bay,” said IWH executive director Lim Chen Herng. Danga Bay is being developed as a resort destination accessible to Singapore, and already has established a number of resorts, and Legoland and Universal Studios amusement parks.
Greenland’s investment will cover two projects and include hotels, serviced apartment and residences. The combined GFA of the projects would total 2.3 million square metres, with one of the sites being the largest in the country, according to the Wall Street Journal.
Greenland Moves into Yet Another Country
Little known outside of China a year ago, Greenland is moving rapidly to become a global real estate company.
After acquiring high profile projects in the US, and Australia last year, Greenland Group, announced in January this year that it plans to spend between US$5 billion to $8 billion more to buy up international assets during 2014. Already this year the group has acquired two London residential projects for more than US$900 each.
During 2013 the state-run enterprise made an impression in the US with its acquisition of the $1 billion Metropolis project in Los Angeles, as well as the $4 billion Atlantic Yards project in Brooklyn. In Australia, Greenland acquired sites in Sydney and Melbourne.
Malaysia Attracting More Mainland Investment
Greenland’s development in Danga Bay will join an existing 21 hectare project from Guangzhou-based Country Garden Holdings Co Ltd, another southern China developer, Guangzhou R&F Properties spent RM4.5 billion (US$1.4 billion) to acquire six sites in Johor Bahru in November of 2013.
Beijing’s Macrolink Real Estate also announced in January this year that it plans to acquire RMB 300 million (US$49 million) worth of land in Johor Bahru for a holiday resort and to open a real estate company in the country.