Mubadala to lead consortium for $1.2b Malaysian development

[NEWUSER]

(MENAFN - Emirates News Agency (WAM)) Mubadala Development Company (Mubadala) is pleased to announce that Memorandum of Understanding (MOU) agreements were signed today to develop the first integrated international city development in the Iskandar Development Region (IDR), referred to as Node 1.

This partnership with leading blue-chip investors from the Gulf Cooperation Council (GCC) Countries is a major catalyst and a significant milestone in the development of IDR. ALDAR Properties PJSC, a leading Abu Dhabi-based developer, will act as its Master Development Manager for Node 1.

This landmark investment will represent the single largest foreign real estate development in Malaysia, one of the largest real estate developments in the region and one of the largest single foreign investments ever in Malaysia.

The signing of the MOUs builds upon the existing strong ties between the Government of Malaysia and the Government of Abu Dhabi and is anticipated to fuel future cooperation between the government and the private sectors of both sides.

Mubadala's investment in Node 1 builds upon a solid history of relations between Abu Dhabi and Malaysia. His Excellency Khaldoon Khalifa Al Mubarak, CEO and Managing Director of Mubadala commented, "We believe strongly that sustainable development built upon a solid infrastructure attracts global brands and pays continuing dividends. This is an integral part of our growth strategy in Abu Dhabi and beyond. Node 1 fits well with our vision and investment objectives and Mubadala is pleased to be part of this endeavour".

ALDAR Chairman His Excellency Ahmed Al Sayegh said, "We are pleased to be part of this landmark project, one that shares the core values upon which ALDAR has been founded of sustainability, environmental stewardship and shareholder returns. Node 1 has the opportunity to be a showcase of new ideas and standards in development and ALDAR is committed to its success."

The conditional agreements entered by South Johor Investment Corporation Berhad (SJIC), through its subsidiary Rim City Sdn Bhd (RCSB) today were with three leading consortiums, led by Mubadala, Kuwait Finance House and Millennium Development International Company, who will invest more than USD1.2 billion of initial investment for land and infrastructure to develop three Clusters, namely the Lifestyle and Leisure Cluster, the Cultural Cluster and the Financial District.

These three Clusters will consist of nine distinctly themed zones. The various consortiums in partnership with SJIC will be making further development investments of several multiples over the initial investment of USD1.2 billion over a twenty year period.

The basis of the Node 1 sustainable development concept revolves around the target of creating a complete lifestyle with a balanced mixture of eastern culture, heritage and style of architecture, coupled with the latest technology, world class logistics and security systems.

The underlying strategy is to capture various local, regional and international market segments in view of the strategic positioning of the development in key target sectors.

The launch of Node 1 is expected to serve as a catalyst for the entire region with structured incentives designed to meet the needs of global businesses and a quality of life proposition to attract entrepreneurs and professionals.

Node 1 is a development spread over approximately 9.02 million square meters, located in the area of Nusajaya, between the new Johor State Administrative Centre and the Second Crossing to Singapore.

The first of the three conditional investment agreements signed today was with Mubadala of Abu Dhabi on behalf of a consortium to be lead and managed by Mubadala. This consortium will act as the Master Concessionaire and Land Developer (MCLD) investing approximately USD520 million for the Lifestyle and Leisure Cluster comprising a City Centre, Golf Village, Amusement Bay, Residential District and a Medical and Wellness Village in an area of approximately 5.1 million square meters.

The second agreement was between RCSB and Al Nibras 2 Limited, a fund managed by Kuwait Finance House (Labuan) Berhad (a wholly owned subsidiary of Kuwait Finance House (Malaysia) Berhad) which will act as the MCLD investing approximately USD330 million for the Cultural Cluster comprising the Logistics Village, Creative Park and Heritage District, of over approximately 2.5 million square meters.

The third agreement was with Millennium Development International Company (MDI), a member of Saraya Holdings, which will act as the MCLD, investing approximately USD325 million in land concessions for an International Financial District zone over approximately 1.4 million square meters.

In each of the three consortiums, SJIC will be a strategic partner with a 30% stake.

Dato' Azman Mokhtar, Chairman of SJIC said that "This is a historic and strategic landmark transaction between our two regions. The combination of economic, geographic and environmental ecosystems offered by IDR is unique."

He added that "SJIC is delighted to have ALDAR, Mubadala, Kuwait Finance House and MDI as founding partners in Node 1. Each entity is committed to sustainable development and investment strategies for their projects and shareholders and we are keen to achieve success together in IDR."

K. Salman Younis, Managing Director of Kuwait Finance House (Malaysia) Berhad said "We are pleased to be part of Malaysia's pre-eminent growth initiative. Through our participation in Node 1, KFH is building upon our existing presence in Malaysia and hopes to continue to be part of its success. The Logistics, Creative and Heritage Zones in Node 1 will offer investors, corporate tenants and residents a wealth of choice and opportunity in this residential and commercial development that sets new and international standards for liveability and quality of life."

Ali Kolaghassi, Chairman of MDI said, "Millennium International Development Company's investment in IDR is part of our global mandate to seek unique opportunities in real estate development management that address the growing demand for structured, end-user targeted products. Our investment in IDR and the International Financial District fits well with our objectives and meets the need for a new financial hub to serve expanding markets in Asia and for Islamic banking services. MDI is committed to making IDR a model for smart growth and a global destination of choice for commerce and financial services."

source: http://www.menafn.com/qn_news_story_s.asp?StoryId=1093164838

[pedang]

org lain x de problem je nak invest kecuali jiran kat selatan tue.. ape da mcm2 alasan n syarat :D

[alsen]

nice to see foriegn investors in Malaysia especially from ME.i hope giant companies in Dubai will also invest here too like Emaar and Dubai World. ;)

[pedang]

^^

More ME funds flowing here

by Surin Murugiah & Sharon Tan
Email us your feedback at fd@bizedge.com

KUALA LUMPUR: More investments from the Middle East are expected to flow into Malaysia, especially into property and infrastructure projects slated to be implemented under the Ninth Malaysia Plan (9MP), says RHB Islamic Bank chairman Datuk Vaseehar Hassan.

He said there was a higher influx of funds from the Middle East, particularly from among oil-rich Gulf Cooperation Council (GCC) member states that sought to diversify their capital in this region against in the US.

“This is also boosted by the fact that a large majority of the country is Muslim-populated, and the many positive measures taken by the government to encourage Islamic finance here,” he said at the 5th International Islamic Banking and Finance Conference here.

His presentation entitled “Is There Really Growth in Foreign Direct Investments into Malaysia by the Gulf Investors” was delivered by RHB Islamic Bank Bhd chief executive officer Jamelah Jamaluddin.

Among countries likely to make large investments in properties and infrastructure were Kuwait, the UAE, Bahrain, Lebanon, Qatar and Saudi Arabia that are likely to heavily invest here more in properties as well as infrastructure projects.

Vaseehar said the regional corridors and 9MP projects, which would drive the country’s development in the coming years, provided investment opportunities for Middle East investors.

He cited recent Middle Eastern funds’ investments in Malaysian companies indicated the future trend in the coming years.

The latest investment was from four Middle East companies, who were investing RM4.2 billion in the Iskandar Development Region (IDR) to develop the region’s first integrated international city referred to as “Node 1”.

The four were Mubadala Development Co, Kuwait Finance House (M) Bhd, Millennium Development International Co and Abu Dhabi-based developer Aldar Properties PJSC.

Recent notable investments were Saudi Telecom’s acquisition of a 25% stake in Binariang GSM Sdn Bhd that owns Maxis Communications Bhd, Kuwait’s Al-Sabah family-led consortium acquisition of a strategic stake in Putrajaya Perdana Bhd and the Saudi Economic & Development Co Ltd’s purchase of a 22% stake in Gefung Holdings Bhd.

Vaseehar’s expectations of higher inflow of Middle East investments were also reinforced by Dubai Investment Group (DIG) Asia Sdn Bhd chief executive officer and head of Asia Datuk Ali Abdul Kadir.

Ali said there were many companies in Malaysia trading at low price earnings ratios.

“There are companies taken private because the market has not valued them properly. It is cheaper for the owners to take it off the market and take it somewhere else and Malaysians should wise up on this,” he said.

Speaking to reporters at the Malaysian Institute of Certified Public Accountants (MICPA) - Bursa Malaysia Business Forum 2007 here yesterday, he said DIG’s recent purchase of a 5.22% stake in Scicom (MSC) Bhd was a good investment.

Ali said Scicom, with its good base in Malaysia, had the potential to develop the business further and also into Indonesia.

DIG said the investment group always looked for companies which had “good management and corporate governance, was very profitable, paid good dividends and was undervalued by the market”.

Asked whether DIG would invest in IDR, Ali said the fund only focus on acquiring equities.

The group was looking at sectors which provided good returns, including the oil and gas and related services sectors.

Ali said although DIG Asia understood the Malaysian market better than any other countries, it invested throughout Asia and Australasia.

“We spread our risk by investing in the region and diversifying our investments,” he said.

On the US subprime crisis, Ali said the group was not concerned about the issue as it gave investors the opportunity to buy at a time when the market was low.

However, investors needed to ensure that companies were undervalued as a result of market forces and not poor governance or false accounting issues, such as with Transmile Group Bhd and Megan Media Holdings Bhd, he added.

[NEWUSER]

org lain x de problem je nak invest kecuali jiran kat selatan tue.. ape da mcm2 alasan n syarat :D

I completely agree with you - what exactly did you say? :poke:

[hetfield85]

I really really like to see Emaar to invest here in Malaysia

[pedang]

I completely agree with you - what exactly did you say? :poke:

we need more n more ME investors :)

[NEWUSER]

^^ yah it's coming... Malaysia is beautiful country indeed and more investors will join in.... :)

[OshHisham]

Dubai World's Indoor Skiing has to be built in malaysia!!!! :D

btw, NEWUSER, you are welcomed to join Malaysia Forum :yes: a lot of exiting projects around malaysia...especially KL

[haze]

DUBAI WORLD COMING!! :banana:

MMC, Dubai World in RM16b deal
by Surin Murugiah
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: MMC Corporation Bhd has teamed up with Dubai World to develop a maritime centre masterplan comprising oil terminal activities, drydocks, a shipyard, conventional cargo handling facilities, logistic parks and real property development, which will have an estimated gross development value (GDV) of RM16 billion.

The two parties have signed a memorandum of understanding (MoU) to explore opportunities for joint development of the maritime centre masterplan in south Johor, including MMC’s landbank of 913 hectares in Tanjung Bin, which has been earmarked for industrial development.

It said the GDV of the petroleum and maritime industrial zone was estimated to cost RM9 billion, while the other RM7 billion would be for the drydocks, a shipyard, ports and logistic and property development in the south Johor area.

MMC chief executive Feizal Ali said the masterplan would further develop the hinterland in south Johor, and benefit its subsidiaries Pelabuhan Tanjung Pelepas Sdn Bhd and Johor Port Bhd as investments increased in south Johor.

“Our partnership with Dubai World, which has been the engine of growth for the United Arab Emirates, brings together a tremendous amount of expertise and experience to the development and underscores the interest of international investors in this project,” he said.

In a statement, Dubai World chairman Sultan Ahmed Bin Sulayem said it saw a bright future for the multi-faceted development.

“An integrated maritime centre will improve efficiency, and allow those involved in many businesses associated with the maritime industry to make the most of the opportunities within the region as well as in Malaysia’s vibrant and rapidly growing economy,” he said.

Its director Jamal Majid Thaniah said the agreement was part of its efforts to diversify its investment portfolio in line with its development goals, adding it was another milestone for its expansion strategy in the Asia-Pacific region.

Dubai World owns and invests in companies behind world-class projects including The Palm, The World and DP World, which is the third-largest marine terminal operator in the world.

The project in south Johor is expected to commence later this year, and will be operational in the second half of 2010.

This is the second joint-venture project with parties from the Middle East to be announced within a week.

Last Friday, MMC announced that its 51% owned Malakoff Corporation Bhd had entered into an agreement with the Jordanian government, Enara Energy Investments, Jordan Dubai Energy and Consolidated Contractors Group S A L to jointly acquire a 51% stake in Central Electricity Generating Co of Jordan (CEGCO).

It said the agreement formalised the group’s entry into Jordan, and would form part of its global expansion strategy into the power business in West Asia.

[skyscraperboy]

RM16b! Cayalah!

[Joe_centennial]

we need more n more ME investors :)
:) :) :) Nice one.

[szehoong]

org lain x de problem je nak invest kecuali jiran kat selatan tue.. ape da mcm2 alasan n syarat :D

You have to understand why Singaporeans have reservations investing in Malaysia. Currently they are still the largest group of investors here.

At my condo alone, 40% of buyers are Singaporeans. The developer cheated all of them (and us Malaysians too) so do you think that gave a good impression? Many of the owners at my condo vowed that they would never buy any property in Malaysia again. ONe of my very good Singaporean neighbour there sold 2 of his units and he is now investing in Vietnam. :(

In fact there are so many cases of Singaporeans got cheated when investing in Malaysia. Furthermore the crime situation in Johor is not helping.

The IDR are specifically targetted at Singaporeans. There are reasons why the govt and the private sector target Singaporeans first then only middle eastern investors. ;)

So yea......heard of: 'Once bitten, twice shy' ? :yes:

[haze]

first come, first serve la.

[haze]

cari international/local developers yg berwibawa dulu mcm Dubai World, baru buyer yakin. Crime n cheater everywhere la.. even in sgp n vietnam.

check it out:

http://www.mom.gov.sg/publish/momportal/en/press_room/press_replies/2006/help_for_malaysian.html