IIB and China firm in RM2.5bil mega property venture

Deputy Prime Minister Tan Sri Muhyiddin Yassin and President of MCA Datuk Seri Chua Soi Lek witneesing the MOU between President of Iskandar Investment Berhad Datuk Syed Mohamad Syed Ibrahim ad Zhuoda Group Legar representative Yang Hau Qing on the Delevopment of commercial project in Medini Iskandar Malaysia during the world chinese economic forum at Palace of the Golden Horses. - AZHAR MAHFOF/The Star

SERI KEMBANGAN: Iskandar Investment Bhd (IIB) and China-based real estate developer Zhuoda Real Estate Group have entered into two framework agreements to develop mixed residential and commercial projects in Medini Iskandar Malaysia in Johor.

This marks the first real estate investment by a foreign company in Medini and the biggest project investment in the area to date. The gross development value of the project is estimated at RM2.5bil while the gross development cost is about RM1.85bil.

IIB and Zhuoda subsidiary, Qingdao Zhuoyuan Investment Holdings (Zhuoyuan), will jointly develop the first two of the three-phase project. The third phase would be developed solely by the Chinese company.

Medini is IIB's flagship development in Medini North, its leisure and tourism area. It is set to come alive next year with the opening of Asia's first LEGOLAND theme park, together with a complementary lifestyle retail mall, hotels, healthcare services, offices and residential projects.

The signing ceremony yesterday was held in conjunction with the 3rd World Chinese Economic Forum in Seri Kembangan.

IIB president and chief executive officer Datuk Syed Mohamed Syed Ibrahim told a news conference the project was expected to be completed over the next 10 to 15 years and that work on the first phase would start next year.

The first framework agreement is for the formation of a joint venture between IIB and Zhuoyuan to develop a residential project on an 18.14-acre plot in Medini North. The project, 80% owned by Zhuoyuan, would have a total sales value (TSV) of RM157.6mil, with the estimated investment reaching RM1.2bil.

The second framework agreement is for the sale of lease for a 9.74-acre plot, also in Medini. Zhuoyuan would carry out a mixed-use development on the site. It would have a TSV of RM70.8mil and the total investment is estimated at RM520mil.

“Zhuoyuan's investment in Medini is a clear affirmation of the company's confidence in the growth potential of Iskandar Malaysia and IIB as its investment partner to take advantage of opportunities in South-East Asia,” Syed Mohamed said.

“As a strategic partner of the 3rd World Chinese Economic Forum, we encourage more businesses from Malaysia and China to seek ways to further enhance cooperation, despite the current global economic uncertainties, and subsequently contribute towards the quest of reviving the Silk Road,” he added.

Said Zhuoda chief operating officer Yang Han Qing: “This signing is a milestone for Zhuoda's maiden overseas investment and a landmark in Zhuoda's history to become a global company.”

Iskandar Malaysia has recorded committed investments of RM77.82bil from various sectors as of September this year, according to Iskandar Regional Development Authority.

By The Star