Malaysia's largest urban project Medini launched

Published: 2008/10/07

Medini is Iskandar's first sizeable world-class offering to the international property space and is expected to bring in over US$20 billion in gross development value

MALAYSIA'S single largest urban development to date, Medini, was officially launched at the GCC's annual property investment event, Cityscape Dubai, yesterday.The catalyst development, previously referred to as 'Node 1', is located in Iskandar Malaysia and is expected to bring in gross development value (GDV) in excess of US$20 billion (RM69.6 billion) over a period of 15 to 20 years.In a statement, Iskandar Investment Bhd (IIB) managing director Arlida Ariff said Medini is Iskandar Malaysia's first sizeable world-class offering to the international property space. "The development is undoubtedly strong in its strategic positioning, government backing, and supporting infrastructure and resources and when you add the invaluable commitment, experience and expertise of our Middle-Eastern partners - we're looking at a winning formula," she added.

IIB's Middle-Eastern business partners in the development include
Rim City Sdn Bhd (RCSB),
Cultural Cluster Sdn Bhd (CCSB) and
Mubadala Development Company (Mubadala),
with the latter leading a consortium called
Global Capital comprising other well-known industry players
ALDAR Properties PSJC (ALDAR) and
Millennium Development International (Millennium).

CCSB is a special purpose vehicle which is majority-owned by
Al-Nibras 2 Limited, a Labuan-based private fund company managed by
Kuwait Finance House (Labuan) Bhd (KFHLB).
The other shareholders are
Khazanah, the government investment authority of Malaysia and the parent company of IIB, and
Jumeirah Capital.

Medini is set to be a 920ha international mixed-use urban development, located on prime greenfield land in the heart of Nusajaya, Johor. "We decided to capitalise on the exposure provided by the Cityscape platform to launch Medini, and in tandem, open up a limited number of exclusive opportunities within our space here for commitment from keen investors," said Richard Polkinghorne, country director of Millennium.

The company, highly experienced in large scale and mixed-use projects, will drive the 146ha International Financial District (IFD) set to be the world-class hub of Islamic Finance in Southeast Asia, with the presence of international financial institutions, banks and corporations.

Another segment in Medini known as the Lifestyle and Leisure Cluster is headed by Mubadala, whose plans include the development of 496ha of land into a City Centre, Golf Village, Medical and Wellness Village, Amusement Bay and a Residential District.

Lastly, CCSB will undertake 249.6ha in Medini to build the Creative Cluster which will include the Heritage District, Creative Park and Logistics Village.

IIB holds a 30 per cent stake across these collaborations in the Medini development. "Malaysia's long-term economic objectives will be strongly perpetuated with every success and progress made in Iskandar Malaysia. The launch of Medini is an important milestone for us, as we are now beginning to unlock our country's true potential to be a globally competitive nation," IIB chairman Tan Sri Azman Mokhtar added.

Blogger's note:
Int'l Financial District: 146ha, Millennium
Lifestyle Cluster: 496ha (largest chunk), Mu badala
Creative Cluster: 250ha, Cultural Cluster(CCSB)

Medini Ready To Attract Foreign Investors

October 04, 2008 15:25 PM
Medini Ready To Attract Foreign Investors
By: Ramjit-->

KUALA LUMPUR, Oct 4 (Bernama) -- Foreign investors, such as those from the Middle East and the Far East, are critical in determining the success of Iskandar Malaysia.This is either in respect of project financing, acquiring properties to be developed, a place to live or a base for businesses.With billions to be spent annually over the next two decades on the development of Iskandar Malaysia, it is obvious Malaysian investors alone cannot provide the financing.Foreign partners are an advantage as they usually have the networking to promote the projects globally, and in Iskandar Malaysia, only top international developers are being invited to be partners.

A major marketing event for the development in Iskandar Malaysia next week, is Cityscape Dubai 2008, where Medini Iskandar Malaysia, now known as Node 1, will be unveiled.Cityscape Dubai 2008 will be held from Oct 6-9 at the Dubai International Exhibition Centre in the United Arab Emirates.The largest business-to-business international real estate event in the world, it is expected to attract over 60,000 professionals from over 140 countries.

Medini will be developed by Rim City Sdn Bhd, a subsidiary of Iskandar Inverstment Bhd, in collaboration with its foreign business partners Mudabala from Abu Dhabi, Dubai's Millennium Development International Company and Kuwait Finance House.Iskandar Investment, formerly known as the South Johor Investment Corporation Bhd, is the super developer of Iskandar Malaysia with a landbank of about 2,750 hectares.The foreign partners committed an initial investment of US$1.2 billion (RM4.1 billion) last year and it is being spent on land and basic infrastructure development in Medini.

Medini, is a name inspired by the ancient capital of Johor called Ujung Medini, or "End of the Continent".The international mixed-used development on a 920-hectare site will be the growth catalyst for Iskandar Malaysia which is expected to be developed over a 15-20 year period for over US$20 billion.The master plan for the development of Medini will be submitted by the year-end and approved in the first quarter of next year.The construction of the first building will be undertaken in the second half of 2009, said the head of marketing and business development for Node 1, Hanafiah Mansor.Development such as Medini is needed to provide a quantum leap and the right benchmark for Johor, he stated during a recent press visit there.Although the land is currently bare with just some preparatory works on the site, he highlighted that within the first six years, 50,000 people are expected to live and work in Medini.This will increase to 150,000 in 10 years and 300,000 people within the next two decades.-- BERNAMA

Iskandar Malaysia eyes Mideast funds

Published: 2008/09/26
BTimes

DUBAI: Malaysia is turning to Middle East investors to boost investments in a special economic zone in Johor as financial turmoil in the US slows interest from overseas.Iskandar Malaysia, three times bigger than Singapore, would be Malaysia's largest economic zone. The government says it should create 800,000 jobs and attract US$100 billion (US$1 = RM3.43) in investment over 25 years.Its proponents say it could be Southeast Asia's answer to China's Pearl River delta, a manufacturing heartland that turns out more than a quarter of China's worldwide exports.Speaking ahead of the Gulf Arab region's largest real estate exhibition in October, Arlida Ariff, managing director of Iskandar Investment, said the project was on track, having secured up to August this year RM39 billion, 80 per cent of a RM47 billion target by 2015.

"It's a new market (Middle East) for us and an area Malaysia had not really tapped in the past," she said."Those markets are not as affected by the financial crisis in the US and Europe."Malaysia has been a magnet for Middle Eastern investors flush with petrodollars who have been snapping up banks, hotels and malls.So far, much of the investment in Iskandar Malaysia from the Gulf Arab region has gone into real estate.Islamic lender Kuwait Finance House, Abu Dhabi investment agency Mubadala Development Co, Aldar Properties and Dubai-based Limitless are among the names that have signed up for the multi-billion-dollar scheme.

Arlida, previously the planning manager for the developer behind the Petronas Twin Towers in Kuala Lumpur, said investor interest remained with "the exception of financial services"."We had ambitions to create a new financial district and of course we wanted to attract names like Morgan Stanley and Lehman Brothers to operate in the special economic zones, but obviously some no longer exist ... we will have to continue attracting other names," she said.Iskandar Malaysia has managed to bring in some multinationals like General Electric and Arlida expects to seal a deal with an international theme park operator by year-end to develop one of three leisure parks in the 2,200 sq km economic zone.Reports in April said the government was in talks with Walt Disney. "We have been in conversations with most of the major theme park operators round the world, but with the financial crisis everyone is fairly careful right now, but we hope to announce a deal with at least one by year-end," Arlida said, declining to identify the companies it is in talks with.She said infrastructure works, which the government and utility firms are funding at a cost of about RM10 billion, had started. - Reuters