KUALA LUMPUR (April 16): The Greenland Group, China’s major state-owned company, is acquiring a prime waterfront land in Iskandar Malaysia, despite recent reports that Chinese firms may shun Malaysia amid the on-going MH370 crisis.

The property conglomerate signed an agreement in Shanghai with Johor-based Iskandar Waterfront Holdings Sdn Bhd (IWH) for the purchase of 13.96 acres in Danga Bay for RM600 million, according to an IWH press statement.

The site, near Johor Bahru city, has been earmarked for a mixed integrated development in joint-venture with IWH. The five-year project will have a gross development value (GDV) of RM2.2 billion.

“The Shanghai-based Group is keen to expand its land bank in Johor and is finalising talks with IWH and its associated companies for two or three more land acquisitions soon,” said IWH in the statement.

Greenland Group chairman Zhang Yuliang and vice president Xu Jing signed the land purchase agreement at the company’s corporate headquarters in Shanghai today, while  IWH was represented by its managing director Tan Sri Lim Kang Hoo and group executive director Lim Chen Herng.

“We believe this investment, by virtue of its strategic location and proximity to Singapore, will offer good returns on our investment,”said Zhang Yuliang.

IWH said it plans to leverage on Greenland’s forte in mixed commercial development, including high-end hotels and residential towers, to help transform Danga Bay into an integrated international waterfront city.

“We believe Greenland Group will pave the way for more China state-owned companies to invest in outstanding property projects in Iskandar Malaysia and IWH’s extensive waterfront landbank in Johor Bahru,” said Lim Chen Herng.

IWH is a public-private partnership involving the state and federal governments and local investors. It is the master developer of some 1,620ha (4,000-acres) of waterfront land on the eastern and western sides of the Johor Causeway.