Interest in Nusajaya industrial park warms

Interest in Nusajaya industrial park warms




(SINGAPORE) Initial response may have been cool, but companies in Singapore are showing more interest in Nusajaya’s Southern Industrial and Logistics Clusters (SiLC), where land prices are on a climb.


And according to a diplomat, Malaysia’s political developments should not cloud prospects for the Iskandar Malaysia economic zone.


Nusajaya’s master developer UEM Land said yesterday that SiLC’s Phase 1 has sold over 52.5ha of land, valued at around RM145 million (S$61 million). Some 95 per cent of the buyers, or around 22 companies, are based in Singapore.


Buyers include engineering and construction services provider Yong Nam Holdings and container handling firm Stinis Singapore.


UEM Land was in town to market another 40.4ha of freehold land in SiLC. Prices are likely to be around RM26 psf, a 30 per cent jump from RM20 psf when the land was first sold early last year.


SiLC is a 525.3ha park for advanced technologies, nutrition and health and integrated logistics industries in Nusajaya, a township in South Johor’s Iskandar Malaysia zone. Phase 1 of the park spans 121.2ha and UEM Land expects the remaining land in this phase to be taken up by the year-end.


The roadshow also showcased various developments in Iskandar Malaysia, but a Reuters report on Monday cast doubts over the future of the economic zone. Some investors may be ‘worried that the plans will be shelved if Mr Abdullah loses power’, the report said.


Calling the Reuters report ‘frivolous’, Malaysian High Commissioner to Singapore N Parameswaran said that the claims were ‘something that investors need not be concerned about, because this is a project … which enjoys the support of the entire Cabinet’. Referring to political developments in the country, he said: ‘I don’t see that this will affect the project at all.’


The Reuters story also noted ‘lukewarm response from big investors in nearby Singapore’ to the Iskandar Malaysia project. Sharing his experience marketing the SiLC, UEM Land managing director Wan Abdullah said that it was because investors ‘want to see delivery’.


He pointed out that developments in SiLC are taking shape, and that ‘we will continue to further enhance and improve’.


He also said that SiLC’s Phase 2 is under construction and may offer ‘a new value proposition that would make the buyers happy and our shareholders happy’.


Source: Business Times

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