Bank Islam branch in Section 14, Petaling Jaya. Bank Islam is the banking arm of Main Board-listed BIMB Holdings Bhd. (Pix taken by Hafidz Mahpar for Star Online)
KUALA LUMPUR: Bank Islam Malaysia Bhd signed a financing agreement with developer Urus Maju Ehsan (M) Sdn Bhd (UME) on Monday for two waqf land development projects worth RM15.5mil.
The two projects, on 485.62ha in Selangor, are the bank’s first waqf land development projects the bank is financing, and are expected to begin this year and be completed in two or three years.
The first project comprises 164 condominium units and 12 shoplot units in Shah Alam covering 1,000 sq ft with a leasehold price of about RM350,000.
The second project involves the construction of 13 units of shop offices and 34 bazaar units in Klang.
The shop offices, covering 3,024 to 3,780 sq ft, have leasehold prices of between RM861,840 and RM1.1mil, while the 888 sq ft bazaar units are priced at RM250,000 each.
Speaking to the media on Monday, deputy chief executive officer Khairul Kamarudin said the financing agreement was the first collaboration between the bank and Urus Maju Ehsan.
“We hope to expand this relationship to partly finance the waqf land projects.
“In whatever projects the company is doing, the main focus is still on housing, and this is one of the ways for us to monetise the land and at the same time address the need for housing,” he said.
Bank Islam will provide project financing as well as end-financing for the purchase of the condominium, shop house and shop office units through its Al-Waqf Home Financing-i product.
This initiative is one of the bank’s contributions towards expanding the waqf industry in Malaysia and boosting Muslims’ asset holdings, he said.
Meanwhile, UME executive chairman Azli Md Yusof said the developer is also involved with agriculture and education projects.
“All these projects are in three phases, and will be completed within five to six years’ time, with a gross development value of RM300mil,” he said.
UME, a fully-owned unit of Perbadanan Wakaf Selangor, is entrusted with developing waqf land in the state. - Bernama
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