Real Estate Investment Opportunity in Iskandar Development Region

Opportunity Snapshot

  • Country: Singapore Singapore
  • Industry: Real Estate
  • Stage: Start-up
  • Investment size: $1,000,000 / min. $50,000
  • ROI: 25% in 1 years
  • Type of investment: Debt, Equity

Investment Opportunity

Secure your investment with real estate. Get up to +25% per year on the value of your investment - Yield 6% to 9.6%. Prices start from US$170,000.

Geographical Factors:

The Iskandar Development Region (IDR) is located at the border of Singapore, in Malaysia (Johor).

Political Factors:

The Iskandar Development Region (IDR) is an ambitious partnership between Singapore and Malaysian Governments to turn 2,500 sqkm of land (three times the size of Singapore) into an economic zone in Malaysia.

It attracted RM50 billion (USD15B) in investments within the first five years and is expected to top up to RM370 billion (USD118B) over 20 years.

Singaporean Government invests in this economic zone:
1) To control the real estate Bubble in Singapore
2) To generate new business opportunities for companies, in this economic hub.

Singapore Government has invested S$30 billion (USD24B) in IDR.

All features have been put together to warrant the success of IDR:

An International education city (16,000 students) is under construction. An international clinic and medical research center are already built, as well as, shopping malls, resorts, entertainment themes parks (Lego Land, Hello Kitty, …) and all commodities for international residents to feel at home.

The Singaporean-Malaysian Governments partnership is now evolving to transportation links development:
• A subway (MRT) and a High Speed Train (HST) will connect both sides, in 2020, on top of the two existing high way.
• Discussions are in progress to partner on air-transport.

Economic Factors:

Singapore has suffered from a significant real estate bubble during 2010 to 2012 (+18% per year average).

The Government has managed to stabilize partially this bubble, with a market increase of 2% per quarter (8% per year - excluding social apartments market).

Because Singapore is a 720 km2 island, horizontal development is getting more and more problematic.

Due to the exponential demand (residential, office, industrial), the market is still under strong pressure.

For this reason, the Singaporean Government has invested S$30 billion, to buy lands in Iskandar, though the investment organization TEMASEK.

Comparison of equivalent residential products in terms of type, size and distance from Singapore CBD (Central Business District), Nusajaya/Iskandar market is 650% lower than Singapore city market.

Since its beginning (2008), Nusajaya/Iskandar residential market has increased +25% per year, with such progression perspective for over the 10 next years, due to the politic efforts and its strategic situation.

Investors can establish contact with us on Merar.com

Rationale for the deal

Product:

Our mission is to assist investors:
• Finding the right product at the right price (built or new construction)
• Getting all administrative procedures done
• Obtaining financing with a bank
• Settling an offshore company (if the investor require it)
• Managing the unit for the investor (rent, re-sale, maintenance)
• Advising and informing the investor on the market evolution

Use of financing

• Financing up to 70% of the acquisition value is available with commercial banks. We are able to assist investors who wish to take a bank loan.

• We are able to assist investors to obtain 0% interest loan on 50% of the invetment (under conditions)

Opportunity for the investor

Recommended Investments in Iskandar:
• Free hold plots (up to 30% price increases per year)
• Free hold Residential products under development (sale in plan or constructed) (up to 25% prices increases per year)
• Free hold Residential products in lease (yield 6% to 7%)
• Commercial / industrial spaces and offices

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