E&O takes a bite of Iskandar play in wellness town project

KUALA LUMPUR: Penang-based property developer Eastern and Oriental Bhd (E&O) is taking its first bite of the action in Iskandar Malaysia's Nusajaya with a joint venture (JV) to develop the iconic wellness township project in the southern state's special economic region.

E&O's foray down south is in collaboration with a special purpose vehicle — Pulau Indah Ventures Sdn Bhd — jointly owned by Malaysia and Singapore's sovereign wealth funds.

E&O on Tuesday, June 28 said its indirect wholly-owned subsidiary Galaxy Prestige Sdn Bhd had inked a deal with Pulau Indah Ventures to establish a 50:50 JV company called Nuri Merdu Sdn Bhd.

Pulau Indah Ventures is a 50:50 JV between Khazanah Nasional Bhd's unit Teluk Rubiah Ventures Sdn Bhd and Aneto Investments Pte Ltd, which is a unit of Singapore's Temasek Holdings Pte Ltd.

Under the deal, Nuri Merdu shall acquire the lease over a 210-acre (85 ha) piece of land which has been identified as Zone E of the Medini Iskandar Malaysia development in Nusajaya.

Galaxy Prestige and Pulai Indah Ventures shall contribute capital of up to RM93 million in their respective shareholding portions to fund the JV's working capital needs and other needs including acquisition costs for the land lease.

The total lease purchase consideration for the entire land in Nusajaya is RM350 million with the Phase 1 purchase of the lease expected to be completed by 2H12, E&O said.

The proposed wellness township is envisaged to be a long-term development with construction expected to commence after Phase 1 of the lease is acquired, E&O said.

E&O is to provide project management services and sales and marketing consultancy services to Nuri Merdu, said E&O.


Eastern and Oriental Bhd,E&O,Iskandar Malaysia,Nusajaya,Pulau Indah Ventures Sdn Bhd,Singapore,Galaxy Prestige Sdn Bhd,Nuri Merdu Sdn Bhd,Khazanah Nasional Bhd,Teluk Rubiah Ventures Sdn Bhd,Aneto Investments Pte Ltd,Temasek Holdings Pte Ltd,Medini Iskandar MalaysiaEastern and Oriental Bhd (E&O) is taking its first bite of the action in Iskandar Malaysia's Nusajaya with a joint venture (JV) to develop the iconic wellness township project in the southern state's special economic region.

E&O's foray down south is in collaboration with a special purpose vehicle — Pulau Indah Ventures Sdn Bhd — jointly owned by Malaysia and Singapore's sovereign wealth funds.

E&O on Tuesday said its indirect wholly owned subsidiary, Galaxy Prestige Sdn Bhd, had inked a deal with Pulau Indah Ventures to establish a 50:50 JV company called Nuri Merdu Sdn Bhd.

Pulau Indah Ventures is a 50:50 JV between Khazanah Nasional Bhd's unit Teluk Rubiah Ventures Sdn Bhd and Aneto Investments Pte Ltd, which is a unit of Singapore's sovereign wealth fund Temasek Holdings Pte Ltd.

Under the deal, Nuri Merdu shall acquire the lease over a 210-acre (85 ha) piece of land which has been identified as Zone E of the Medini Iskandar Malaysia development in Nusajaya.

Galaxy Prestige and Pulai Indah Ventures shall contribute capital of up to RM93 million in their respective shareholding portions to fund the JV's working capital needs and other needs including acquisition costs for the land lease.

The total lease purchase consideration for the entire land in Nusajaya is RM350 million with the Phase 1 purchase of the lease expected to be completed by 2H12, E&O said.

The proposed wellness township is envisaged to be a long-term development with construction expected to commence after Phase 1 of the lease is acquired, E&O said.