Malaysian billionaire king’s son eyes sale of $2.7B Singapore land plot

Representatives of Tunku Ismail Sultan Ibrahim, the Regent and Crown Prince of Johor state, have reached out to developers and other potential buyers in Singapore, Bloomberg reported, citing unnamed sources familiar with the matter.

Ismail is weighing between a complete sale of the land parcel or retaining a minority stake in any future project, though talks are still at an early stage and may not lead to a deal, the sources said.

Tunku Ismail Sultan Ibrahim, crown prince of Johor. Photo by AFP

The site is located in Tyersall Park, an area that inspired the 2013 novel "Crazy Rich Asians," and has been in the Johor royal family’s possession since the 1800s. Ismail is its current registered owner, according to The Business Times.

The plot originally spanned about 21.1 hectares, but a land swap in June saw Ismail exchanging 13 hectares of his estate closest to the Singapore Botanic Gardens, a UNESCO World Heritage Site, for 8.5 hectares of nearby state land "of comparable value," according to two involved Singapore government agencies.

The swap was made to ensure that any future development of Ismail’s land would be set farther back from the gardens. Properties near the UNESCO site are subject to height limits to preserve the landscape views.

The reconfigured plot is suitable for low-rise and low-density housing. It is valued at around S$3.5 billion by local realtor Ku Swee Yong while Nicholas Mak of property portal Mogul.sg pins the figure as high as S$3.8 billion.

The site sits near some of Singapore’s priciest homes, including good class bungalows that regularly fetch tens of millions, as well as the Orchard Road shopping district.

Its appeal is further boosted by its freehold status, which allows indefinite ownership, unlike most residential plots in the city that are sold on fixed leases such as 99 years.

The Johor royal family, headed by Ismail’s father, Malaysia’s billionaire king Ibrahim Iskandar, was estimated to have a fortune of US$5.7 billion as of last year, with their Singapore estate making up a substantial share.

Beyond that, their portfolio spans property, telecommunications, and infrastructure, most notably the US$100 billion Forest City development in Johor.

Ismail has also recently tapped RSP, a Singapore-based design firm owned by billionaire Peter Lim, to develop a $200 million royal estate in the state's coastal town of Desaru.

Regarding his extensive business ventures, Iskandar has said that he "must earn a living, like ordinary Malaysians" as he cannot solely depend on his allowances of RM27,000 (US$6,400) per month.

"I believe it is healthy for royalty to be involved in proper and legitimate businesses rather than to be in dubious businesses that harm the image of the institution. I want to pass this trade to my sons as they need to learn," he told The Star in a 2015 interview, adding that he would like "to pass this trade to my sons as they need to learn."