Bumi company launches RM600m project in Nusajaya

KUALA LUMPUR: Property developer Zikay Group Sdn Bhd has become the second bumiputera company to launch projects worth RM600 million in gross development value in Iskandar Malaysia, Johor.

Zikay is leasing a parcel of land measuring  1.3ha in Medini, Nusajaya, for a mixed development called Zikay@Medini. The project will comprise a lifestyle mall, a Grade A corporate tower, a serviced suites tower and office units.

According to Zikay group managing director Datuk Mohd Khay Ibrahim, the project will commence in the first quarter of next year and is expected to be completed by late 2016.

“The group has come a long way from its humble beginnings 20 years ago. As a local company, we are pleased that this investment will contribute to the overall vision of Iskandar Malaysia," Khay said after the signing of a leasing agreement with Medini Development Sdn Bhd yesterday.

Khazanah Nasional Bhd deputy chairman Tan Sri Nor Mohamed Yakcop and Iskandar Investment Bhd (IIB) CEO Datuk Syed Mohamed Syed Ibrahim were present at the signing ceremony.

Khay signed on behalf of Zikay, while Medini was represented by its CEO Khairil Anwar Ahmad.

Khay said the company will invest RM300 million in the project via internally generated funds and borrowings.

Nor Mohamed said the government has encouraged budding bumiputera entrepreneurs to take part in Iskandar Malaysia to ensure its success.

"Iskandar Malaysia has been and continues to be a success. I'm delighted that bumiputera entrepreneurs are involved and we will take steps to ensure more participation from them," he said.

Syed Mohamed welcomed Zikay's investment in Iskandar Malaysia as this will further strengthen Medini's position as the central business district of Nusajaya.

"Quite a number of developers have purchased plots of land in Medini. We'd like to see them nurture their projects and we will support these companies in any way we can," he said.

IIB is a government-backed strategic developer of projects in Iskandar Malaysia.

Khairil said there is a dearth of quality hotels and Grade A office buildings in Johor, which command a high demand.

"Even in Johor Baru, there are no Grade A offices or hotels with five-star standards," he said, adding that steps are being taken to create more investment opportunities in the Iskandar region.

“We are working with Khazanah to entice multinational companies to establish a presence in Iskandar Malaysia. These are exciting opportunities for existing and would-be investors to capitalise on."


This article first appeared in The Edge Financial Daily, on July 9, 2013.