KUALA LUMPUR: Property developer Distinctive Group has announced that it will be partnering with IGB Corp Bhd to jointly undertake an integrated commercial development in Medini in Iskandar Malaysia, Johor.
The project, to sprawl over 18 acres (7.3ha) of land and to be located in Zone A, is projected to have a gross development value (GDV) of RM2 billion. It will include retail space, offices, serviced apartments and a hotel.
Distinctive Group executive chairman Datuk Dr David Koh said in a statement the partnership was a strategic alliance for both parties.
IGB will be participating in the partnership through its wholly owned unit, Megan Prestasi Sdn Bhd. Yesterday, Koh signed a share sale and purchase agreement (SPA) with Megan Prestasi for the purchase of a controlling stake in investment holding company Distinctive Ace Sdn Bhd, which is part of Distinctive Group.
According to IGB’s filing with Bursa Malaysia, Megan Prestasi is entitled to nominate and appoint any number of persons to form a majority of all executive, management, project and other committees in Distinctive Ace and exercise sole control over the entire management of all projects.
IGB said the project is expected to contribute positively to the earnings of the group in the future. Distinctive Ace is also entitled for tax incentives under the Iskandar Regional Development Authority’s incentive and support packages.
Meanwhile, Koh said for Distinctive Group, the collaboration with IGB would be its third foray into the Johor property market, after its first in 1Tebrau in Johor Baru city centre and Iskandar Residences, also located in Medini.
“This strategic alliance with IGB will enhance the value of the project as IGB would be bringing their renowned expertise into the development of the project,” he said.
He said Medini is already a property hot spot in the region. The proposed development has close proximity to Legoland, Pinewood Studios as well as a wellness centre to be developed by Khazanah Nasional Bhd and Singapore’s Temasek Holdings (Pte) Ltd.
Distinctive Group’s 1Tebrau development, with a GDV of RM386 million, is expected to be completed by the end of 2015. Its Iskandar Residences, with a GDV of RM600 million, spans 6.3 acres in Medini and is slated to be completed in 2016.
Earlier this month, IGB, through its unit Verokey Sdn Bhd, also entered into a joint venture agreement with Tower Ray Ltd for the establishment of a 50:50 joint venture company, Black Pearl Ltd.
The proposed collaboration was to explore opportunities for property investments in the United Kingdom and other businesses approved by both parties.
This article first appeared in The Edge Financial Daily, on June 20, 2013.
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