BERJAYA Jeju Resort, which will be developed into a world-class integrated tourism and recreational destination on the honeymoon island of Jeju, will mark Berjaya Land Bhd’s (BLand) entry into South Korea’s property market when the project is launched in the first quarter of next year.
The development would be undertaken by Berjaya Jeju Resort Ltd, a 81:19 joint venture between BLand and Jeju Free International City Development Centre (JDC).
The joint venture company has invested US$30mil as initial paid-up capital in the development.
BLand chief executive officer Datuk Francis Ng said the development was a strategic investment because the geographical location of Jeju made it a well-connected city with a potential market of over 750 million people.
“Jeju’s free international city status coupled with various tax incentives, such as the five-year corporate tax exemption from the first year of profits, and the property tax exemption of 15 years for both Korean and foreign investors, are the primary factors why Jeju is seen as a good investment destination,” he told Malaysian journalists on a recent site tour of the project.
Other favourable factors include a friendly corporate investment environment, an effective legal system, and the availability of professionals drawn from the ranks of the more than 6,000 local graduates churned out there yearly.
“We are confident that our long term investment in South Korea will stand us in good stead for stronger growth and to partake in other related business activities in the coming years,” Ng added.
Located on 183 acres in Yerae-dong in Seogwipo City in southwest Jeju, Berjaya Jeju Resort with a potential gross development value (GDV) of US$3.5bil is targeted for completion in 2015.
Among the various components of the development will be 1,282 residences, including villas and apartments, worth a GDV of US$1.5bil; a casino, two hotels, shopping mall, an indoor arena and a valley resort and wellness resort.
Ng said the indicative prices of the residential properties in Berjaya Jeju Resort would be between US$500 and US$600 per sq ft.
The first phase of the development, comprising the North Gate mid-rise apartments, is planned for launch in the first quarter next year. The other precincts including the casino, casino hotel and shopping mall would kick off in two to three years.
BLand senior general manager for properties marketing Mah Siew Wan said as there was no restriction on foreign buyers to purchase property in Jeju, “we will be targeting buyers from China, Japan and Taiwan.”
“Our immediate target market will be Korean buyers, especially from Seoul. It is said that it is every Korean’s dream to own a home on Jeju island,” Mah said.
South Korea has a population of more than 70 million, of which 560,000 are residents in Jeju.
According to JDC chairman and chief executive officer Kim Kyung Taeg, Berjaya Jeju Resort would redefine Jeju’s waterfront and bring a whole new dimension to Jeju’s tourism industry.
“It is expected to foster an eco-friendly, high value-added leisure environment and is part of our vision to establish Jeju as an international city with world-class tourist destination developments,” Kim said.
The integrated resort development would be able to position Jeju as an important investment opportunity and also put the island on the world map.
Source : STAR
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