Tan Sri Quek Leng Chan and Iskandar Waterfront Holdings

How important is it to buy a property from a property developer where the shareholders are famous tycoons? Actually, I do not think many use this as a key reason when they buy. An established property developer would be able to charge a premium because of their track record or even successful branding campaigns. I think it’s best to buy objectively instead, though. The key advantage of having a tycoon however would be that the development or developer should have no shortage of funds to complete the project on time. We can perhaps define these projects as safer and thus low-risk. Of course, if the tycoon himself has a unit within the development and we want to be near him, then buying a unit may be a good option. Haha.
Reported in The Star today (22nd Jan 2016), Iskandar Waterfront Holdings Sdn Bhd (IWH) may have new shareholders in the form of parties linked to tycoon Tan Sri Quek Leng Chan. It said the party was looking at acquiring a 20 percent stake in Credence Resources Sdn Bhd, which owns a 60% stake in IWH. The remaining 40% in IWH is held by Kumpulan Prasarana Rakyat Johor, an investment arm of the state government. Recently, it was announced that IWH would be the master developer of Bandar Malaysia together with China-based China Railway Engineering Corp (CREC). Note this statement, “The interest expressed is still in preliminary stages with the due diligence being done.”
In Johor, IWH is known as the master developer of the 4,300-acre Danga Bay waterfront city in Johor. IWH has also partnered 11 other developers for projects along an 8km coastal stretch of Danga Bay. Total Gross Development Value (GDV) for these projects is estimated to be RM125 billion over a period of 10-15 years. As of now, perception for Iskandar is related to one word, ‘oversupply.’ Is it truly that bad?  Read here for an Expert Series with Khalil Adis focused on Iskandar. To those who firmly believe Iskandar is for the long term and the fact that Singapore would have to continue growing, it’s time to take a drive. Buying can be later but understanding should be done instead of just listening to news.
written on 21 Apr 2016
Next suggested article: The ageing Singaporean population equation and Iskandar