BT: Dubai World unit, UEM to develop waterfront homes

Business Times - 20 Dec 2007

Dubai World unit, UEM to develop waterfront homes

111-acre project is in the Residential North precinct of Puteri Harbour

By PAULINE NG IN KUALA LUMPUR

A UNIT of Dubai World has signed an agreement with Malaysia's UEM Land to jointly develop a premier waterfront real estate project with canal-front homes and high-end condominiums in Nusajaya in the Iskandar Development Region (IDR).

Haute Property, the special purpose vehicle established to undertake the 111-acre development in the Residential North precinct of Puteri Harbour, would be 60 per cent held by Limitless Holdings - the global development arm of Dubai World - and 40 per cent by UEM Land.

Limitless's majority stake indicates that it is likely to call the shots. In any event, its participation is calculated to boost the prospects of the 688-acre Puteri Harbour integrated waterfront and marina development which its promoters say is to be fashioned after the French Riviera, 'offering a panoramic view of the Straits of Johor'.

Limitless regional director, South East Asia, Philip Atkinson said that Nusajaya was an 'excellent initiative' by the Malaysian government. In view of the developments in the Far East and China, he believed that it is important for countries to form strategic alliances, this initiative allowing closer ties with Singapore.

Haute has been set up with an initial investment of nearly RM242 million (S$106 million), mainly for land costs. Physical activity on the Residential North precinct - said by some to be similar to Singapore's Sentosa Cove - is expected to commence in the second half of next year, with Limitless expected to tap into the experience and exposure gained by its other real estate initiatives including the Palm Islands, World Islands and Jumeirah Islands in Dubai.

Residence North's estimated gross development value is expected to be in excess of RM1.5 billion by the time of its completion in 2013.

The Dubai World unit is the latest Middle East outfit to signal its real estate development intentions in the IDR, which the Malaysian government seeks to transform into a special economic zone.

In August, the Abu Dhabi government investment arm Mubadala Development Company, Kuwait Finance House and Millennium International Development Co signed a conditional agreement with the State Johor Investment Committee to invest an initial US$1.2 billion to develop 902 ha in South Johor into a lifestyle, cultural and financial centre. But the amount was mainly for land and infrastructure costs and could rise to up to US$10 billion upon completion of the entire development.

A bigger project in South Johor which Dubai World is also involved in is a planned RM16 billion Petroleum & Maritime Industrial Zone and ports and shipyards expansion project with local conglomerate Malaysian Mining Corporation.

Residence North is the smallest of Limitless' six global projects which total some US$100 billion. The flagship project of the two-year-old global integrated real estate master developer, which has a regional office in Singapore, is Downtown Jebel Ali in Dubai. But its biggest and most complex project by far must be the US$61 billion 20,000 ha 'city within a city' Arabian Canal mega project, also in Dubai.