The Prime Ministers of Malaysia and Singapore today witnessed the exchange of Shareholders’ Agreements between Khazanah Nasional Berhad (“Khazanah”) and Temasek Holdings (Private) Limited (“Temasek”) in relation to the joint investments in M+S Pte Ltd (“M+S”) and Pulau Indah Ventures Sdn Bhd (“Pulau Indah”).
Owned 60:40 by Khazanah and Temasek respectively, M+S will develop land parcels in Marina South and Ophir-Rochor in Singapore whilst Pulau Indah, a 50:50 joint venture between Khazanah and Temasek, will develop projects in Iskandar Malaysia, Johor.
Khazanah and Temasek are pleased to report that significant progress has been made since the strategic joint real estate investments between the two parties was announced on 27 June 2011, in the areas of:-
Governance
The Boards of both joint investment companies have since been constituted comprising key industry leaders to provide strategic direction and ensure successful execution of the projects.
Development of sites in Singapore
In Singapore, M+S has appointed architects and key consultants for the Marina South and Ophir-Rochor developments. The architects were selected after a design competition of both international and local architects. The project managers, which are indirect wholly-owned subsidiaries of UEM Land Holdings Berhad (“UEM Land”), Mapletree Investments Pte Ltd (“Mapletree”) and CapitaLand Limited (“CapitaLand”) together with the consultants had submitted the designs for provisional planning approvals in 4Q2011.
Khazanah and Temasek are in the midst of discussions with banks to provide financing for the developments, which has an estimated gross development value of SGD11 billion (RM27 billion). The developments are expected to be completed over the next six years, with construction expected to commence in 2013.
Development of the Urban Wellness and Resort Wellness sites in Iskandar Malaysia
Pulau Indah will develop the “Urban Wellness” project, a 5-acre site in Medini North and the “Resort Wellness” development which is a 210-acre site in Medini Central.
The gross development value of the projects, which include the development of a wellness centre, serviced residences, a corporate training centre, commercial, retail, residential and wellness-related offerings is estimated at approximately RM3 billion.
For the Urban Wellness project, Pulau Indah has appointed CapitaLand as project manager via the exchange of the Project Management Agreement. With this appointment, CapitaLand will join the team of key consultants and architects which were selected by the Board. The architect was chosen based on a design competition involving various Malaysian architecture firms. The Urban Wellness development is expected to be completed over the next four years, with construction expected to commence in 2013.
Pulau Indah and an indirect wholly owned subsidiary of Eastern and Oriental Berhad (“E&O”), also today exchanged the Shareholders’ Agreement in relation to Nuri Merdu Sdn Bhd, the 50:50 joint venture vehicle for the Resort Wellness. E&O will also carry out the project management and marketing for the Resort Wellness site. To-date, the architect, master planner and key consultants have been selected for the project which will be developed in phases. The initial phase of the development is expected to be completed in five years, with construction expected to commence in 2013.
Further to the above, the models and concept plans for the Urban Wellness and Resort Wellness were unveiled earlier today to the Prime Ministers of Malaysia and Singapore.
