CapitaLand JV fulfils conditions to buy Danga Bay land parcels

CAPITALAND on Friday said that its consortium has satisfied the conditions required before it can acquire the land parcels on A2 Island in Danga Bay, Iskandar Malaysia, Johor.

The consortium, called Hallmark Connection Sdn Bhd (HCSB), had earlier signed a sale and purchase agreement with Iskandar Waterfront Sdn Bhd (IWSB) for the land.

CapitaLand, through its wholly owned subsidiary CLM Isle Investment, owns 51 per cent of HCSB; the vendor IWSB and Temasek own 40 per cent and 9 per cent respectively.

According to Bloomberg data, Temasek also owns about 39 per cent of CapitaLand.

A2 Island in Danga Bay is envisaged to be developed into a premier waterfront residential community comprising high rise apartments, landed homes and other supporting amenities, CapitaLand said.

The development will be paced and executed in phases over a period of 10-12 years according to market conditions, as originally envisaged, it added.

Earlier, it had also said that the acquisition and development of A2 Island will be financed by equity, external financing and sales proceeds from the sale of properties to be developed.

The three joint venture partners will contribute up to RM1.05 billion (S$404 million) in equity altogether.