Share
KUALA LUMPUR: After prolonged discussions, Malaysia and Singapore's plans to cooperate on land development in both countries have taken off with the establishment of two joint-venture (JV) companies on Monday, June 27, and the appointment of UEM Land Holdings Bhd and two units of Temasek Holdings Ltd to oversee the development and marketing of the Singapore projects.
Khazanah Nasional Bhd and Singapore's Temasek on Monday night announced the establishment of two JV companies to undertake development of land parcels in Singapore and Malaysia.
The two sovereign wealth funds have incorporated a company called M+S Pte Ltd to undertake development of the land in Singapore. M+S will develop four land parcels in Singapore's financial district in Marina South and two in Ophir-Rochor. All the projects are envisaged as integrated developments.
Khazanah will hold 60% equity interest in M+S while Temasek will hold the remaining 40%.
UEM Land and a wholly-owned subsidiary of Mapletree Investments Pte Ltd, a unit of Temasek, have been appointed to oversee the marketing and development of the project in Marina South. For the Ophir-Rochor site, UEM Land and a wholly owned subsidiary of CapitaLand Ltd, another Temasek portfolio company, have been appointed to oversee the marketing and development.
"Khazanah and Temasek are both committed to the successful commercialisation of these land parcels, which will include office, residential, hotel and retail components," the joint statement from Khazanah and Temasek said.
The Singapore projects have a permitted gross floor area of up to 501,020 sq m with an estimated GDV of approximately S$11 billion (RM27 billion), the statement added.
This landmark development comes as Singapore and Malaysia last May resolved a two-decade long impasse over the relocation of the historic Keretapi Tanah Melayu Bhd (KTMB) station in Tanjong Pagar, Singapore, under the Points of Agreement (POA) which was signed in 1990.
The 1990 POA has been supplemented by new terms and conditions which include a land swap for the Malayan railway land. The agreement also has proposals for new bilateral cooperation, including the development of the iconic wellness-related township in Iskandar Malaysia, Johor, and the development of a rapid transit system (RTS) to connect both countries.
Earlier, it was agreed that Malaysia and Singapore would jointly develop three parcels of land in Tanjong Pagar, Kranji and Woodlands as well as another three pieces of land in Bukit Timah. These tracts were swapped for pieces of land with equivalent values in the Marina South and Ophir-Rochor areas.
Just last week, UEM Land told Bursa Malaysia that its subsidiary, Sunrise Bhd, had incorporated a company in Singapore called Sunrise MS Pte Ltd to provide consultancy, advisory and technical services relating to project development in the island republic. UEM Land acquired Sunrise late last year to boost its earnings and branding, and inject new catalysts into the development of its Iskandar Malaysia landbank.
Analysts welcomed the latest development, adding that it signals improving bilateral ties between the two countries.
"The speed at which both sides worked on Monday was amazing. A joint statement (by both governments on the intention of forming the joint ventures by end-June) came out in the afternoon and by night, both companies were already incorporated," said an analyst, noting that it suggested a strong resolve to get the project moving.
For the projects in Malaysia, meanwhile, Khazanah and Temasek on Monday established a 50:50 JV company called Pulau Indah Ventures Sdn Bhd to undertake two developments in Iskandar Malaysia.
The two proposed developments are the Urban Wellness development in Medini North and the Resort Wellness development in Medini Central. Pulau Indah will develop serviced apartments, a corporate training centre, and commercial, retail, residential and wellness-related offerings on these sites. Khazanah and Temasek said they are currently in discussions and negotiations with potential partners and operators for the various components to maximise the commercial potential of the location
The GDV of the Iskandar projects, with a permitted gross floor area of up to 1,365,675 sq m, is estimated at RM3 billion.
"In addition, Khazanah and Temasek will jointly consider other potential developments which are commercially viable in Iskandar Malaysia of up to 200ha of land, inclusive of the 87ha [for the wellness projects in Medini north and central]," both governments said in a joint statement earlier on Monday afternoon.
An analyst said this joint venture augers well to increase Singapore investment in Iskandar Malaysia, where UEM Land owns large tracks of land.
"By this move, the Singapore government has sent a very strong signal of confidence in Iskandar," he noted, adding that it would pave the way for Singapore's private sector to participate more actively in the development.
Tan Sri Azman Mokhtar, Khazanah managing director, said: "We are honoured to be undertaking these exciting developments at these key sites. We look forward to a strong and fruitful partnership."
Ho Ching, executive director and CEO of Temasek, added: "Both the Khazanah and Temasek teams put in tremendous effort. We were also very fortunate to have the expert and highly professional support of leading real estate companies like UEM Land from Malaysia as well as Mapletree and CapitaLand from Singapore."
SHARE
