Khazanah, Temasek in talks on funding Singapore projects

PUTRAJAYA (Jan 6): Khazanah Nasional Bhd and Temasek Holdings (Pte) Ltd are currently in the midst of discussions with banks to provide financing for M+S Pte Ltd development projects in Singapore.

M+S, a company owned 60:40 by Khazanah and Temasek respectively, is set to develop land parcels in Marina South and Ophir-Rochor with an estimated gross development value (GDV) of RM27 billion (S$11 billion).

The developments in these areas are expected to be completed over the next six years, with construction expected to commence in 2013, according to a joint statement released by Khazanah and Temasek after the bilateral meeting between Prime Minister Datuk Seri Najib Razak and his Singapore counterpart Lee Hsien Loong on Thursday.

It added that M+S had appointed architects and consultants for the Marina South and Ophir-Rochor developments and submitted the designs for provisional planning approvals in the last quarter of 2011.

Meanwhile, Pulau Indah Ventures Sdn Bhd, a 50:50 joint venture between Khazanah and Temasek, will develop the "Urban Wellness" project on a 2.02ha site in Medini North.

It will also develop the 85.5ha "Resort Wellness" project in Medini Central.

The GDV of the projects, which include the development of a wellness centre, serviced residences, a corporate training centre, commercial, retail and residential and wellness-related offerings, is estimated at approximately RM3 billion.

For the Urban Wellness project, Pulau Indah has appointed CapitalLand its project manager via the exchange of the project management agreement. The project is expected to commence in 2013 and to be completed over the next four years.

For the Resort Wellness project, Pulau Indah and an indirect wholly-owned subsidiary of Eastern and Oriental Bhd (E&O), had exchanged the shareholders’ agreement in relation to Nuri Merdu Sdn Bhd, the 50:50 joint-venture vehicle for the Resort Wellness project.

E&O will also carry out the project management and marketing for the Resort Wellness site.

The architect, master planner and key consultants have been selected for the project, with the initial phase expected to commence in 2013 and the whole project to be completed in five years.

Najib and Lee were briefed on the concept for both the Urban Wellness and Resort Wellness developments. — Bernama