Malaysia's Iskandar Waterfront Holdings Sdn Bhd (IWH) has sold 15 hectares of seafront land in Danga Bay for MYR1.6 billion to Singapore's Hao Yuan Investment Pte Ltd. Hao Yuan is planning an MYR8 billion development project in the bay featuring Peninsular Malaysia's tallest tower.

Malaysian news portal Star Online, citing a statement by IWH, said that Danga Bay's master planner had signed a sale and purchase agreement with Hao Yuan for six parcels of land. The said land will be developed by Pristine Sun Properties Sdn Bhd and will be a 60-40 joint venture between Hao Yuan and IWH.

The price tag of MYR1.6 billion works out to a land cost of 20% of the MYR8 billion gross development value. This is within the range of 15%-20% typically paid to a landowner in Malaysia, the report said.

At about MYR998 per square feet, the sale set a new benchmark for commercial land transactions in the city of Johor Baru. The Hao Yuan deal bested even the landmark MYR4.5 billion transaction between the Sultanate of Johor and China's Guangzhou R&F Properties Co. Ltd., which was agreed at MYR891 per square feet, Star Online said.

IWH is expected to ink more property deals in the coming months as interest picks up in Johor's development region Iskandar Malaysia, the report said.