KUALA LUMPUR: It’s all systems go for Bandar Malaysia with the settlement of the deposit for the mega-project by master developer IWH-CREC Sdn Bhd.
The payment of the remaining 8% of the deposit, or RM592.8mil, and a RM500mil advance to TRX City Sdn Bhd for a 60% stake in the project has unlocked the next stage, which is the commencement of the project development.
The first pile for the project is expected to kick off early next year for the first 20.23ha, which IWH-CREC is targeting to finish in four years.
IWH-CREC is the joint-venture (JV) company of Iskandar Waterfront Holdings Sdn Bhd (IWH) – a private vehicle of tycoon Tan Sri Lim Kang Hoo (pic below) – and China Railway Engineering Corp (M) Sdn Bhd (CREC).
Lim told StarBiz that they will be targeting international investors and companies to participate in the development, which will also include an underground city portion.
The land will be sold for no less than RM1,500 per sq ft, with all the integrated infrastructure in place.
“We’ve got quite a lot of investors who are waiting to come in but because of the movement control order (MCO) due to the coronavirus (Covid-19), it left things hanging for a while.
“While we’re still under the recovery MCO period until the end of December, we’re ready with the entire masterplan and we have completed the integrated component, ” he said.
To help sell the land, a slew of tailored incentives for investors will be rolled out based on the types of industries and businesses that need to be attracted to the massive development.
Lim said they have to choose the right developers that can bring in the multinational companies (MNCs), such as those that have developed the Pudong and Shenzhen cities and the Beijing financial district in China.
Bandar Malaysia, as envisaged by Lim, will be home to multinational and Fortune 500 companies, the top 100 financial institutions and the best of tourism and medical sectors.
It will be a purpose-built city for Malaysia and an intelligent one at that, to make it the model development of a future city equipped with 5G connectivity and artificial intelligence to place the country ahead of the curve in the region.
Lim said the first phase of the integrated development will house the MNCs and all the foreign direct investment (FDI) that they will be bringing in, together with the Finance Ministry.
“We hope we can kick off after all the technical details are done. A lot of people seem to think that Bandar Malaysia will glut the whole of Kuala Lumpur, but no, we are bringing in MNCs, FDI and financial institutions, ” he said.
The entire Bandar Malaysia project as a whole is expected to house around 500,000 people who will be working and staying there after it is completed.
China Railway Dong Fang Group Sdn Bhd director and president Shi Yuan said Bandar Malaysia is in a strategic location for the Belt and Road Initiative.
“Our vision is that this will be the most advanced urban city in the world, ahead of Tokyo and Hong Kong.
“It combines not only convenience, but also the best transportation, infrastructure and smart city management systems.
“The companies that we’re trying to bring in are high-tech and finance companies for the initial stage, which we believe will assist in Malaysia’s economic boom, ” Shi said.
Following the settlement of the RM1.24bil to TRX City yesterday, IWH-CREC will now need to make two more staged payments of RM960mil each, while the balance will be paid via two bank guarantees, which will be secured via land charges.
The JV company had tendered for the Bandar Malaysia project at RM12.35bil, of which it has to pay RM7.41bil for its 60% stake.
IWH-CREC will shortly invite qualified local and foreign investors, developers, consultants and contractors to submit their proposals to participate in the development.
Lim stressed that there will be strong opportunities for bumiputra and Malaysian company participation, while the use of Malaysian construction materials, technologies and local talent will be prioritised.
Bandar Malaysia will be home to the Express Rail Link (ERL), KTM and Mass Rapid Transit (MRT) Line 2 and 3 and the existing ERL railway which connects the KL International Airport (KLIA) and KL Sentral transportation hub.
The MRT2 project has already designated two stations in Bandar Malaysia which is set to be completed by 2021, as well as the Setiawangsa–Pantai Expressway (SPE), formerly known as DUKE 3, slated to be complete by 2021, which is linked to 12 other highways into KL city, and will be aligned to Bandar Malaysia.
To be developed over 20 years, Bandar Malaysia will shape the future direction of Kuala Lumpur by offering a liveable new lifestyle city with modern infrastructure to become an iconic development within the Asean region.
“If you look at Montreal, it is also purpose-built, over the last 60 to 70 years. So the entire Bandar Malaysia is not going to be complete within the next 10 years or so.
“It may take 20 to 30 years to finish, depending on the market, ” said Lim.
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