UALA LUMPUR: The bungalow land price for Leisure Farm Resort, one of Iskandar Malaysia’s pioneer exclusive residential and resort developments, has risen by as much as 20 times since its launch back in 1991, and the price is expected to climb further with better connectivity.

The price hike is in tandem with others in Iskandar Malaysia, Johor. For example UEM Sunrise Bhd’s properties in East Ledang, Nusajaya, is currently trending at about RM100 to RM200 per square foot (psf) compared with RM12 to RM16 psf in 1996.

Leisure Farm Resort, developed by Mulpha International Bhd, covers a total of 1,765 acres (714.3ha)of freehold land within Nusajaya.

Yesterday, property developer UEM Sunrise Bhd, signed a collaborative agreement with Mulpha for the development of three sets of roadworks in Iskandar Malaysia that are expected to benefit owners and investors in the vicinity.

Nusajaya Rise Sdn Bhd (NRSB) and Leisure Farm Corp Sdn Bhd (LFC), subsidiaries of UEM Sunrise and Mulpha respectively, will embark on the creation and upgrading of roads in Gelang Patah and Gerbang Nusajaya, that would jointly serve the needs of the population of Gerbang Nusajaya and Leisure Farm Resort.

NRSB and LFC’s  59:41 joint venture is valued at RM107 million, UEM Sunrise said in a statement yesterday.

For owners and investors of real estate in the area as well as Leisure Farm, it will mean greater capital gains and value appreciation, said Mulpha executive chairman Lee Seng Huang.

“As a pioneer in Iskandar Malaysia, I recall that when Leisure Farm Resort was launched in 1991, the bungalow land was transacting at RM6 to RM9 psf, today the same lots are exchanging at 20 times that value, reaching almost RM200 psf,” he added.

With this new interchange, Lee noted that prices should continue to set new records.

As for commuters in the vicinity of Gerbang Nusajaya and Leisure Farm Resort who travel to Singapore, the highway interchange project will significantly cut travel time to and from the “Linkedua” (Second Link bridge in Gelang Patah) to just five minutes from the current 15 minutes, he pointed out.

Lee also noted that the interchange will not just benefit the stakeholders of Gerbang Nusajaya and Leisure Farm Resort but will add value to the overall Iskandar Malaysia, improving infrastructure and connectivity.

Mulpha has leveraged on its expertise abroad to become Malaysia’s largest real estate investor and developer in Australia — owning world-class assets that include Sanctuary Cove and InterContinental Sanctuary Cove Resort in Queensland, InterContinental Sydney, Norwest Business Park Sydney, The Hotel School Sydney, Bimbadgen Estate in New South Wales’ Hunter Valley and the world-renowned and award-winning Hayman Great Barrier Reef.

Meanwhile, UEM Sunrise executive director Datuk Izzaddin Idris said the joint venture will create a mutually beneficial transport ecosystem around Gerbang Nusajaya, Gelang Patah and Leisure Farm Resort, which are located in close proximity to each other.

“It will also enhance accessibility to and from the area, putting in place good infrastructure for other catalytic developments to thrive in Gerbang Nusajaya,” he added.

The strategic partnership with Mulpha will further develop Nusajaya as a driving economic force in the region, Izzaddin noted.

This article first appeared in The Edge Financial Daily, on May 7, 2014.