The next frontier in industrial parks

Challenging the limits of innovative designs and green features, a new wave of industrial parks are emerging in Iskandar Malaysia to rave reviews both locally and across the Singapore border.

BY YVONNE YOONG
yvonneyoong@thestar.com.my

18 Aug 2014

CAPTURING the headlines lately, a new generation of industrial parks are emerging in the famous region of Iskandar Malaysia.

No longer subjected to lacklustre designs characterised by conventional looking industrial factories, the emergence of modern designs amid green lungs and eco-parks will take pride of place in the tech parks.

Besides commanding the spotlight with their modern designs spread across wide spaces, these gems of industrial real estate offerings are proving to be beneficial for Iskandar Malaysia and Singapore.

This new phenomenon points to mutually beneficial joint partnerships by virtue of Iskandar Malaysia being strategically located adjacent to the Lion City. The joint ventures and strategic collaborations are now setting the pace for the way forward in complementing the needs on both sides of the border.

Nusajaya’s newest gem

Competitively priced in comparison to industrial real estate in the Lion City and the cost of doing business across the border, it is no surprise that Singaporeans are investing in Nusajaya Tech Park located at Gerbang Nusajaya within Nusajaya in Iskandar Malaysia– situated just minutes away from the Malaysia-Singapore Second Link Expressway.

Singapore’s confidence in the development was also reflected in Ascendas Pte Ltd, Asia’s leading business space solution provider, forging a 60:40 joint partnership with public-listed Malaysian developer UEM Sunrise Bhd, resulting in the new industrial real estate gem.

It is Malaysia’s first tech park to be awarded the BCA (Building and Construction Authority) Green Mark Gold for Districts. The 519-acre (210ha) integrated tech park with a gross development value (GDV) of RM3.7bil can accommodate some 200 enterprises once its three phases are completed over nine years.

Ascendas president and group chief executive office Manohar Khiatani said that work on its start-up phase spanning over 71 acres (28.7ha) will begin soon and is expected to be completed by 2016.

Its first release has already gotten a 40% pre-commitment for ready-built facilities in the start-up phase.

Veritas Architects Sdn Bhd’s Ar. Shah Jaffar who is in charge of Phase 1 of the overall design concept at Nusajaya Tech Park said there will be five layouts ranging from the smallest intermediate semi-detached type 1A unit (13,231 sq ft) to the largest intermediate detached type 2 unit (33,095sq ft).

“We’re designing and supervising the construction of Phase 1’s 43 units of ready-built factories and the entrance statement of the park.”

He said that the overall design concept will go beyond the mandatory 5% reserved green area and will incorporate fields, parks, lakes and even a football field for the workers.

“We’re building a ‘green community’ for our clients comprising precision engineering firms, medical and high-tech electronic companies.

The time is right for a green working environment and sustainable living concept,” he said, confident that Nusajaya Tech Park will not only be a model for Iskandar Malaysia, but also an example to the country.

“The design took an unprecedented approach with practically no hard ‘edges’. Conventionally, ready-built factories take the front and back stage configuration approach.

“The design will be fluid, continuous and seamless using energy-efficient features such as natural lighting and ventilation plus the Greenmark-rated, eco-friendly building materials,” he said.

Sports and fitness centres will epitomise the “green and healthy living community”; driveways and common facilities will be powered by sustainable energy while solar PV (Photovoltaic) panels will light up the common areas. Rainwater harvesting will be another eco feature.

“In this technological age, globalisation is the only way forward.”

Nusajaya Tech Park epitomises a bilateral model for a win-win situation in which its Singapore partners can gain access to Malaysia, which offers land banks at competitive prices coupled with the local investment-friendly policies.

Shah believes that the pressures of critical land shortage and inflated real property prices on the island escalated by tough future policies for landed factory in Singapore are luring Singaporean buyers to register interest in Iskandar Malaysia.

Gated, guarded and green

The RM600mil Frontier Industrial Park is poised to gain from Johor’s growing manufacturing sector comprising established local industries that have been operating here for some 10 to 20 years and Singapore-based companies that are relocating to benefit from lower priced units, lesser labour and operational costs.

Developed by WB Land Sdn Bhd, which is backed by Woon Brothers Construction Sdn Bhd, its innovative designs within a G&G environment have been a hit with Singaporean investors by virtue of its enviable location in the high-growth central region of Iskandar Malaysia at Desa Cemerlang in Ulu Tiram, Johor.

Envisioned as a “home for industries”, setting a new benchmark with its safe, secure industrial zone with facilities usually found in a residential enclave, Frontier won the “5-Star Best-in-Malaysia for Industrial Development” title at the Asia Pacific Property Awards 2014.

At the launch of Frontier 2, WB Land general manager and director Wong Yen Yap was confident that the “green home” for industries will enable a healthy work-life balance.

“The timing is right for developing industrial land. There are lots of genuine demand from local buyers who have bought into Frontier 1. At least 50% of them are running homegrown factories in Johor, having established themselves here for nearly 20 years. The other 50% are Singaporeans. We are seeing a mix of buyers for Frontier 2 now.

“In fact, we have many buyers from Frontier 1 who are also intent on buying Frontier 2 units which will be completed by the fourth quarter of next year,” he shared.

“We challenged the norms of factory design by providing a dormitory for workers to stay. Our buyers particularly love this. We want to make Frontier 2 a homely place for industries to thrive,” he said.

The dormitory is scheduled to be ready by the first quarter of 2016.

WB Land head of sales and marketing Kevin Woon agreed. He said that Frontier 2 is located only 15 minutes from Johor Port, 25 minutes from Woodlands Checkpoint and 30 minutes from Senai Airport.

“We’ve taken the bold decision to offer a centrally located two-acre (0.81ha) recreational park in the centre of Frontier 2, complete with a gym, jogging tracks and pavilions as we wanted to give better value to our buyers who are looking for more than just factories to work in.

A north-south orientation and high-glazed windows allow natural light in minus the heat while rainwater harvesting is a standard feature of the factory units with front and side roller shutters.

Optimal security features abound with barrier gates, CCTV surveillance, security patrols and secured access to workers’ dormitory.

The RM354mil Frontier Industrial Park Phase 2 (Frontier 2) is an award-winning industrial development with a two-acre (0.8ha) central park within a G&G eco-friendly zone that has received rave reviews from local and Singaporean buyers.

It will comprise 92 units, with 86 semi-detached units and six detached factories that will come complete with dormitory facilities.

Frontier 2 units will have built-up areas ranging from 6,341sq ft to 30,000sq ft and priced between RM2.2mil and RM9mil. 95% of the earthwork for the 62-acre (25ha) tech park has been completed.

It will be developed in three phases and is expected to be fully completed by July 2018. Following the success of Frontier 2, Frontier 3 will be launched in July next year.

“Frontier 3 is an extension – given the demand from the buyers who want a professional space and quality materials. Buyers are getting more and more picky. They have a right to be. They should get their money’s worth so the trend will be to look further into the value of the factories like value for money and the potential for appreciation,” summed up Wong.

(Source: http://www.starproperty.my/index.php/articles/investment/the-next-frontier-in-industrial-parks)