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Country Garden sees more diversified revenue from Forest City

Forest City developer Country Garden Holdings Company Ltd (CGH) expects more diversified revenue from sales and rental from a variety of properties this year.

These include offices, shopping malls, a new hotel and golf course, in addition to residential properties.

Between January and December 2016, it sold more than 15,000 residential units.

"We remain committed to the development of Forest City. This is an ambitious project that will take about 20 years to materialise," the company said in a statement today.

As a project targeting international buyers and global market, CGH said "it is on track to build and deliver the residential and commercial units on schedule to its buyers and investors".

The developer said it is currently in "positive discussions" with more than 30 companies and investors on the possibility of setting up their regional hubs or to jointly develop and manage real estate assets in Forest City.

"These companies are in the tourism, education and healthcare sectors," it said.

Attracting businesses into Forest City paves the way for the formation of an economic hub at Iskandar Malaysia and "we expect to make some announcements in the coming months".

On cancellation after a sales and purchase agreement (SPA) has been signed is deemed as a breach of contract, CGH clarified that a penalty clause ranging between 10 percent and 30 percent "only kicks in when a buyer decides to default on the payment or cancels the SPA".

"The terms and conditions outlined in our SPA are in accordance with the laws and standards," it said.

CGH said a complete set of the SPA are accessible in both English and Chinese at its sales galleries.

To date, CGH said it has received enquiries from "less than 60 buyers in China" who had indicated they would like to cancel their bookings.

"We are currently in discussions with them," it said.

Some property buyers from China have been affected after Beijing imposed tighter rules to curb capital flight from the country.

Since March 13, 2017, CGH said its sales galleries in China have ceased all travel-related support services for mainland Chinese travelling to Forest City.

"This means mainland Chinese buyers who are interested in the Forest City project will have to find their own way to our sales gallery in Iskandar Malaysia.

"Our sales galleries worldwide are still operating in accordance with laws and standards," it said.

Country Garden Pacificview Sdn Bhd is the master developer and creator of Forest City, a joint-venture company between CGH and Esplanade Danga 88 Sdn Bhd, an associate company of Kumpulan Prasarana Rakyat Johor.

Forest City is a smart city project, with a building area of 1,370 hectares, investment of RM170 billion, and estimated to provide more than 220,000 job opportunities in Johor by 2035.

It is estimated to have a gross development value in excess of RM100 billion over 20 years.

- Bernama

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