KUALA LUMPUR: Tropicana Corp Bhd plans to unlock its landbank in Johor and develop two mega townships worth over RM35 billion in gross development value, capitalising on the booming property market, said its deputy chief executive officer, Khoo Thian Shyang.
He said that Tropicana's major shareholder, Tan Sri Danny Tan, aims to launch the Lido Waterfront Boulevard in Johor Bahru and Tropicana Uplands in Gelang Patah, foreseeing a need to meet expected upcoming demands for housing, commercial, recreational, and lifestyle hubs.
According to Napic, the Southern Region property market saw 103,527 transactions worth RM53.98 billion in 2023, reflecting an 18 percent increase in volume and a 34.9 per cent rise in value compared to 2022.
Napic's Property Market Report 2023 also noted a 20 per cent decrease in unsold property units in Johor, from 5,258 in 2022 to 4,228 units in 2023.
Khoo highlighted the company's strong presence in the Johor landed property market and expressed confidence in its potential, especially with growing multinational interest and inquiries from Singapore companies for Class A office buildings and hotels.
Since 2010, Tropicana has established a significant foothold in Johor through partnerships, such as with Iskandar Waterfront to develop the 37-acre Tropicana Danga Bay and the 227-acre Tropicana Danga Cove.
"We have over 1,000 acres of land in Lido, Danga Bay, Gelang Patah, Permas Jaya, and Pekan Nenas, which have been with Tropicana for more than a decade. Tan Sri Danny Tan is seizing the right moment to launch these two mega townships," Khoo told Business Times. He added that the current rental price hike in Singapore makes it an ideal time for Tropicana to roll out these townships to drive growth in Johor's booming market.
"Launching at this prime time allows us to achieve the highest prices, targeting above RM1,000 per square foot, setting a new benchmark in Johor Bahru," Khoo said, noting the appeal of the prime locations and modern features to locals, Malaysians working in Singapore, and Singaporeans alike.
Lido Waterfront Boulevard, an integrated mixed development with an estimated GDV of more than RM35 billion, will be situated on 163 acres of reclaimed land along the waterfront near Singapore. It will include sectors such as healthcare, medical tourism, hospitality, recreation, and lifestyle.
The project will begin with the launch of The Watermark Residences (Phase 1), with a GDV of RM1 billion, this quarter. The Watermark, located an eight-minute drive from the under-construction Bukit Chagar Station of the Johor Bahru-Singapore Rapid Transit System (RTS), will comprise 1,596 serviced residential units and 16 retail lots.
Khoo said that Tropicana is seeking joint venture partners for additional phases of the Lido project.
Tropicana Uplands is a 314-acre sustainable township in Gelang Patah. Its first residential precinct, Aster Heights, achieved a 100 percent take-up rate for its 193 units of two-story terraced houses within five months of its 2021 launch. The upcoming Fraser Heights, with a GDV of RM387 million, will offer 518 units of premium two-story and two-and-a-half-story terraced houses.
Khoo said that both townships are strategically located with easy access to the Causeway and the Malaysia-Singapore Second Link Expressway, adding vibrancy to the Johor landscape.
"Once the RTS is complete, Johor will be busier than Kuala Lumpur. We are excited about the special economic zone, which will boost demand for properties across Johor, including houses, offices, malls, and hotels," Khoo said.
He concluded that, with Johor experiencing accelerated growth, Tropicana aims to tap into this immense potential and transform these townships into dynamic metropolises in the south.