beware theme park in JB turn into real estate developmemt:
2005-04-21
Section Name: MINISTERIAL STATEMENT
Title: PROPOSAL TO DEVELOP INTEGRATED RESORTS,PROPOSAL TO DEVELOP
INTEGRATED RESORTS
When we were negotiating with the theme parks in the 1990s, I
remember somebody told me that we should look at Walt Disney not
only as a theme park operator, but also as a real estate player,
because they want a big piece of land to build their theme park and
then as the theme park becomes successful the capital value of the
surrounding land appreciates and they make the capital gains of
that land. For example, Walt Disney built Tokyo Disney over
70 hectares.
But when they were negotiating with us in the 1990s, they wanted
300 hectares. Seventy hectares for the first phase to build the
first set of attractions, but they promised us that they
would build Phase II and Phase III, and they wanted the other
pieces of land for future expansion. We earmarked a piece of land
in Seletar for them to look at.
We even offered to build a MRT station between Yio Chu Kang Station
and Khatib Station so that visitors can go to the theme park. We
have Seletar Expressway, so transport is very convenient. It is a
lovely site with the reservoir as a backdrop. But we were not
prepared to pay the very high price needed to give away 300
hectares of land at a very low cost, development fee, management
fee, etc. So the deal fell through.
But we are constantly interacting and talking to the various theme
park operators to continue to attract them. Unless we are prepared
to put in a very high equity stake and fund many of these
attractions, the theme park operators are not likely to come
in.
hope there are wise men in MY govt!
