KUALA LUMPUR: The Bandar Malaysia Fund will accelerate the development of the major city centre project, which has a gross development value of RM200bil and will be built over 15 to 25 years, according to Iskandar Waterfront Holdings Sdn Bhd (IWH) group executive vice-chairman Tan Sri Lim Kang Hoo.
A consortium comprising four local banks and four international banks with a combined asset base exceeding US$13 trillion has set up the new fund to finance the development of the Bandar Malaysia project in the southern fringes of the capital’s central business district.
“The consortium will provide funding for buildings, infrastructure, hotels and anything else in Bandar Malaysia. Our partners have already outlined all the financial needs for each phase of the project,” he told reporters after a signing ceremony for the Bandar Malaysia project here.
The Bandar Malaysia fund, which will finance development and construction works, is backed by some of the largest banks in the world. Participating international banks include the Bank of China, Industrial and Commercial Bank of China, China Construction Bank, and Hong Kong and Shanghai Banking Corp.
According to Lim, the first phase of development comprising some 100 acres will include the construction of Mass Rapid Transit (MRT) lines near the old Sungai Besi Air Force runway area. The development for the phase would take five years to complete.
He added that architectural or construction works relating to the venture would be done on an open tender basis to give local contractors a fair chance to participate.
The creation of the fund was one of three key agreements that were signed yesterday pertaining to Bandar Malaysia, planned to become a premier mixed-use transport-oriented development in the heart of Kuala Lumpur.
The second agreement involved a shareholders’ agreement between Minister of Finance Inc and IWH-CREC Sdn Bhd (ICSB) to regulate their relationship in the joint-venture (JV) company.
ICSB, a 60:40 JV between IWH and China Railway Engineering Corp (CREC), would be spearheading the project.
On March 21, ICSB had announced a US$2bil investment by CREC to build its regional centre in Bandar Malaysia.
The third agreement involved a memorandum of understanding with MALAYSIAN RESOURCES CORP Bhd (MRCB) setting up a JV with Bandar Malaysia Sdn Bhd for the construction of the Bandar Malaysia terminal.
The JV will design, develop and construct a mixed-use integrated transport terminal spanning an area of 60 acres.
“The value of the project to be undertaken by MRCB has not been determined. The focus of the MRCB-led consortium will just be on building the integrated terminal to accommodate the future high-speed rail lines, MRT, Express Rail Link and others,” Lim pointed out.
To a question on whether IWH would undertake an initial public offering in the near future, Lim said the company was in no hurry to do so.
“We are ready for that (listing), but our shareholders will still have to decide on the right time to do so. Bandar Malaysia will be part of IWH’s assets if we were to list,” he said.