B&G Capital to develop land in Iskandar Malaysia

KUALA LUMPUR: Iskandar Investment Bhd (IIB) yesterday signed a 99-year lease purchase agreement for 3.4ha of prime land in Medini Iskandar with B&G Capital Resources Bhd (BGCR).

IIB, which oversees the development of about 3,591.24ha or about 2% of the land in Iskandar Malaysia, signed the agreement via its wholly-owned subsidiary, Medini Land Sdn Bhd.

The agreement involved the purchase of a gross floor area (GFA) of 2.2 million sq ft for three parcels of land in Zone A, north of Medini, for about RM73.34 million.

“The emerging shape and form of Iskandar Malaysia is showing itself as a beautiful masterpiece with extremely high-potential investment and growth opportunities.

“Partners such as BGCR will support our endeavour to not only add more colours in the form of contemporary business and lifestyle solutions to the big picture but will also help enhance the value of real estate in Johor, with multiplier effects on the overall economy,” IIB president and CEO Datuk Syed Mohamed Syed Ibrahim said in a statement.

These parcels of land will be for a mixed commercial development, with an expected gross development value (GDV) of about RM1 billion.

“The group will build Grade A corporate offices, a three-star hotel and a retail gallery encompassing 2.2 million sq ft of development located opposite the Legoland theme park,” BGCR executive chairman and managing director Tan Sri Barry Goh said at the signing ceremony.

He said the group will use its expertise and experience to develop the area into an exciting metropolis to complement the ongoing development in Iskandar Malaysia.

Goh said he is now convinced of the potential of Iskandar Malaysia, and BGCR is looking forward to buying more parcels of land in the area.

BGCR is a major property developer in Malaysia and owns a sizeable landbank of more than 391.88ha, mainly in the Klang Valley.

To date, the group has successfully completed projects worth RM1.5 billion.

This article first appeared in The Edge Financial Daily, on Dec 13, 2012.

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