Thursday, August 30, 2007

ARABS PUMPING BILLIONS INTO MALAYSIA


Aug 29, 2007. A group of investors from Abu Dhabi, Kuwait, Saudi Arabia and Lebanon are expected to join Malaysian investors to develop 2,000 to 2,500 acres in the Iskandar Development Region (IDR) into a high-end integrated city.

While the initial investment in the development is projected to be more than RM3bil, the construction cost is estimated to be between US$10bil and US$12bil, according to sources. The massive development, which will be spearheaded by investors that have transformed cities in the Middle East, is projected to be completed no later than 2015.



The Iskandar Development Region (IDR) in Johor, which has attracted a RM4.1bil foreign investment, is a reflection of investor confidence in Malaysia. Four agreements were signed yesterday between South Johor Investment Corporation Berhad (SJIC) and companies from the Gulf Cooperation Council (GCC) countries.

Strategic Advantages·

.Located at the crossroads of the East-West trade routes.
·Mid-way between rapidly growing Chinese and Indian Markets
·Accessible by Air, Land or Sea from the rest of Asia
·Supported by world-class ports servicing the world; 2 causeways and railway link into Singapore.
·Almost 3 times the size of Singapore, with vast land banks primed with ready transportation and telecommunications infrastructure
·Enjoys the same standards of living at a much lower cost of living than Singapore, Hong Kong, Taiwan, Japan or Korea
·Populated with a multi-lingual, educated workforce from within Johor and the rest of Malaysia



The Iskandar Development Region (IDR) in Johor, which has attracted a RM4.1bil foreign investment, is a reflection of investor confidence in Malaysia. Four agreements were signed yesterday between South Johor Investment Corporation Berhad (SJIC) and companies from the Gulf Cooperation Council (GCC) countries.



The investing companies are Mubadala Development Company (MDC), Kuwait Finance House (KFH) and Millennium Development International Company (MDIC). Aldar Properties PJSC will be managing the development of the project.



“People always look towards Gulf residents, they have the money, and they are the ones looking for places to invest. So they have decided that Malaysia is the place for investment,” he said.



The Prime Minister said the agreements were proof that investors had confidence in Malaysia. “This big project is a very good birthday present for the country.” The landmark investment will be on an 892ha area at the development region referred to as Node 1.



Aldar Properties chairman Ahmed Ali Al-Sayegh praised the project as “a carefully planned venture that will create job and investment opportunities for this region for a long, long time.”

While the initial investment in the development is projected to be more than RM3bil, the construction cost is estimated to be between US$10bil and US$12bil, according to sources.The massive development, which will be spearheaded by investors that have transformed cities in the Middle East, is projected to be completed no later than 2015.

ALDAR Properties PJSC, which is part of a consortium of Middle Eastern companies that will be investing billions of ringgit in Node 1 of the Iskandar Development Region (IDR), believes the project holds tremendous potential.Ahmed Ali Al Sayegh, chairman of ALDAR Properties, which will act as the master planner for the development, said the IDR would be a major world-class development, given its location.

“The vision is very clear. This will be a world-class city, a place for hundreds of thousands of people to work, play and get old, get educated,'' he told a media conference yesterday.

From participating in one of the biggest property boom markets in the world, Al Sayegh feels the IDR has the most important tenet in property. “For real estate, it is location, location, location,'' he said. He said following the requirement from the Malaysian Government, the project would be well planned and “will create a zone not only for working and logistics but for entertainment, education and health that will make the place very liveable”.

“We are pleased to be part of the Government's vision, a clear vision which is important for this thing to take place,'' he said.



As for returns, Al Sayegh said there was no set target for returns from this investment but thought it would be very rewarding in the long term.

“We believe there will be value appreciation of the land and this value will be relevant to our shareholders,'' he said. Al Sayegh added that ALDAR Properties was looking to establish a base in this region and felt the whole region was a compelling growth story. He also said the goal of the project was not just building skyscrapers.



The participation of ALDAR Properties also opens avenues for further investment opportunities with Khazanah Nasional Bhd and it is looking for opportunities in this region.