Sime Darby Property Bhd (SD Prop) will be developing the 379,000-acre Malaysia Vision Valley (MVV) alone, after the memorandum of understanding (MoU) signed with its partners lapsed last year, reported The Star.
Sources revealed that SD Prop and its partners Kumpulan Wang Amanah Pencen (KWAP) and Brunsfield Development Sdn Bhd mutually agreed not to extend the MoU, which lapsed in November last year.
“SD Prop decided to go it alone in developing the massive project by stages to take advantage of the development shift south of Kuala Lumpur,” said a source.
While KWAP has expressed interest in being a partner in some parts of the project, it is “not keen on being part of the master developer team” as it is too large for the fund, revealed an executive close to KWAP.
SD Prop has charted out MVV’s masterplan with the first phase of development, spanning over 11,000 acres, set to kick off soon.
Nonetheless, it is still open to forging partnerships as MVV’s master developer as well as in certain projects within the development.
Despite the soft property market, the developer is confident of demand given that the area is near existing industries in the Sepang and Nilai areas.
“The existing projects are seeing good demand because they are landed and not too expensive. The confidence is based on the thousands of workers in the industries,” said a source.
The MVV project spans from Sepang in Selangor to Port Dickson in Negri Sembilan. The deferred Kuala Lumpur-Singapore high-speed rail will have two stations within the development. An existing railway line with a stop in Labu also provides connectivity to the development.
An official from the state government of Negri Sembilan revealed that the state is helping SD Prop develop the area between Seremban and KLIA.
This comes as it saw tremendous potential in the development, especially to cater to industries wanting to be close to the airport.
“The MVV is a project that will drive development in the state for the next 30 years,” he said.
Image sourced from The Star Online
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
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