Chin Hin Group Property Bhd (KL) has announced a significant partnership with Atlan Holdings Bhd (KL) to jointly develop a high-rise project in Johor Bahru, with an impressive gross development value (GDV) of RM478.42 million. The project marks a notable expansion for both companies in Johor Bahru, an area with increasing demand for residential and retail spaces.
This joint venture is expected to deliver a premium lifestyle development consisting of serviced apartments and retail lots, further enhancing Johor Bahru’s appeal as a real estate hub.
Project Overview: Two High-Rise Blocks in Johor Bahru
The project, located on a 4.29-acre parcel of land, will feature two high-rise blocks of serviced apartments. These blocks will house 1,260 residential units, along with 10 retail lots and multi-storey car parking facilities. The development promises to bring modern and premium lifestyle options to Johor Bahru, contributing to the city’s growing urban landscape.
In addition to the residential units, the inclusion of retail lots will offer added convenience to residents and the surrounding community. The seamless blend of residential and commercial spaces reflects Chin Hin’s vision of creating well-integrated developments that cater to both living and lifestyle needs.
Atlan’s Stake in the Project
Under the partnership agreement, Atlan Holdings, through its indirect subsidiary Kelana Megah Sdn Bhd, which holds a 99-year lease on the land expiring in 2120, will receive 18% of the projectโs net saleable area. This strategic arrangement benefits both companies, allowing them to leverage each other’s strengths for a successful project.
Development Cost and Funding
The estimated development cost for this high-rise project is RM406.42 million, and Chin Hin Group Property will fund the project through a combination of proceeds from property sales, bank borrowings, and internally generated funds. This diversified funding strategy reflects the company’s strong financial planning and commitment to delivering high-quality developments.
A Landmark Achievement for Chin Hin Group Property
Chin Hin Group Propertyโs Group Managing Director, Chiau Haw Choon, expressed enthusiasm about the partnership and the project’s potential. He noted that Johor Bahru is a crucial growth area for the company, and this development marks a major milestone in its expansion strategy.
“This joint venture is a significant step in our efforts to deliver high-quality developments. Johor Bahru stands out as an important area for our growth, and this project is a landmark achievement as we introduce premium lifestyle residential and retail spaces to the region,โ said Chiau.
This collaboration signals Chin Hinโs continued focus on premium real estate developments, reinforcing its position as a major player in Malaysiaโs property market.
Construction Timeline and Expected Completion
Work on the Johor Bahru project is expected to begin in the third quarter of 2025, with a target completion date set for the third quarter of 2029. This multi-year development will offer a significant boost to Johor Bahruโs real estate offerings, providing much-needed residential units and retail spaces in a strategically located area.
Market Impact and Share Performance
Following the announcement of the partnership, Chin Hin Group Property’s share price closed down by one sen, bringing its stock to RM2 per share and giving the group a market capitalisation of RM1.32 billion. On the other hand, Atlanโs share price saw a five sen increase, closing at RM2.60 per share, and its market capitalisation stood at RM659 million.
The stock movements indicate a positive response to the collaboration, with Atlan shareholders particularly optimistic about the projectโs potential impact.
Strategic Significance of the Johor Bahru Market
Johor Bahru is an area of significant interest for both local and foreign investors, particularly due to its proximity to Singapore and its growing infrastructure. The city has seen an uptick in demand for both residential and commercial properties, fueled by industrial development and government initiatives to improve connectivity.
With this project, Chin Hin Group Property and Atlan Holdings aim to tap into the rising demand for high-quality residential and retail spaces in Johor Bahru. This development will not only serve the local population but also attract investors looking for premium real estate options in a fast-growing region.
Conclusion: A Promising Joint Venture in Johor Bahru
The partnership between Chin Hin Group Property and Atlan Holdings represents a promising step forward for the real estate market in Johor Bahru. With a significant GDV of RM478.42 million and a carefully planned development featuring serviced apartments and retail lots, this project is set to make a lasting impact on the cityโs property landscape.
As work begins in 2025, both companies will be closely watched by investors and industry experts, eager to see how this joint venture contributes to Johor Bahru’s urban development and offers new opportunities for homebuyers and retailers alike.
