SHAH ALAM:  A China-based developer will invest as much as RM700 million to develop Sepang into an international coastal town in a joint venture with Sepang GoldCoast Sdn Bhd.

Zhejiang Zhongxia Investment Co Ltd signed a memorandum of understanding (MoU) with Sepang GoldCoast Sdn Bhd last Friday.

“This is our first investment in Malaysia,” the Chinese developer’s executive director Xu Yong told the press after the ceremony.

The joint project involves building a Fisherman’s Wharf Leisure Commercial Street and Golden Palm International Beach Residence, with an estimated gross development value of RM1 billion.

Xu said the fisherman’s wharf will be modeled after the popular tourist attraction of the same name in San Francisco and Hong Kong.

Meanwhile, the Golden Palm International Beach Residence will feature five residence blocks and one service apartment and hotel with about 1,000 units for sale.

Xu expects the units to be snapped up by  buyers from China, Taiwan, Singapore, Japan and South Korea with the aggressive promotion of the Malaysia My Second Home Programme.

“We’ve done market research in some of the countries. The response from China and Taiwan is very positive,” he said.

He said Malaysia is an appealing option for the foreign buyers because of the pleasant tropical climate, multicultural environment and affordable travel cost.

Xu added that they hope to secure all necessary local approvals soon and begin construction next year.

Zhejiang Zhongxia Investment, Sepang GoldCoast and local construction firms will be forming a consortium to undertake the project.

Sepang GoldCoast is a 70:30 joint venture between Sepang Bay Sdn Bhd, which is owned by international company CNI, and state investment arm Permodalan Negeri Selangor Bhd (PNSB).

Sepang Bay and PNSB entered into the joint venture in 2003 to developer 4,621 acres of coastal land stretching over 22km over 15 years.