MB World inks agreement to develop Danga Bay project

29 November 2023

KUALA LUMPUR: MB World Group Bhd  says its wholly-owned MB World Properties Sdn Bhd has signed a development rights agreement (DRA) with Danga Jed Development Malaysia Sdn Bhd, a unit of global Fortune 500 company Greenland Group, to undertake a mixed development project in Danga Bay, Johor Bahru.

Under the agreement, Danga Jed Development will provide MB World development rights to the land.

MB World, a homegrown property developer in Johor Bahru, will use its expertise and experience in the local property market to revive the mixed development.

The mixed development spanning three parcels of lands measuring 17 acres will offer 2,930 serviced apartments and eight townhouses.

It will be developed in three phases and has an estimated gross development value (GDV) of RM2.4 billion.

The project will be funded internally and partly with bank financing.

The first phase totalling 2,003 units and RM1.35 billion GDV is expected to be launched in the first quarter of year 2024 and is slated to be completed in three years.

The project is located at a strategic location along Danga Bay, with easy access to a wide variety of popular destinations and transport hubs including the Johor Bahru CIQ Complex, Johor Bahru Sentral and the future Bukit Chagar RTS Link station.

“With its prime location along Danga Bay and close proximity to the heart of the city, the project is set to change the city skyline and bring new life to the seafront neighbourhood.

“The DRA signing will not only provide development rights to the land and bring earnings visibility to the company; it will also help to expand the company’s footprint in the city centre,” said Cindi Sim, executive director of MB World.

Another major ongoing project by the company in the city centre is the MBW City development, comprising Veranda Residences, Trellis Residences and Avenue Residences with a combined GDV of RM2.2 billion.

Veranda Residences (Phase 1) with total 649 units and an estimated GDV of RM308 million has been fully sold and is expected to obtain CCC in end 2023.

Trellis Residences, offering 1,302 units with an estimated GDV of RM581 million, is 90 per cent sold.

Avenue Residences has a total of 1,796 units and an estimated GDV of RM956 million. 51 per cent of the non-Bumiputera lots have been booked during its current soft launch period.

The last phase of MBW City, the Veranda Residences (Phase 2) with total 649 units and an estimated GDV of RM369 million, is expected to be launched in year 2025.

“We are excited with the performance of MBW City and would like to thank RHB Bank that shared the same vision with us and financed the project since we acquired the development land in year 2019.

“The bank has stepped up to finance our Pandan Heights project in Pandan City of Johor Bahru. The project offers 1,012 units and has an estimated GDV of RM490 million.”

To date, 56 per cent of the non-Bumiputera units had been sold since it is open for sale in August 2023, said Sim.

MB World’s recent projects in Johor Bahru also include Sierra Heights, Meldrum Heights, Aliff Heights and Idaman Heights totalling 2,525 units with a combined GDV of RM1.2 billion.

“Backed by the support and confidence of all end-financing banks, these projects have been well-received and achieved a high take-up rate.

“This has also proven the potential of Johor Bahru property market, catalysed by the development of Johor Bahru-Singapore Rapid Transit System link,” she said.