Tuesday, 9 July 2013

(BUSINESS TIMES) Mammoth RM2b Iskandar project

ESTIMATED RM4B GDV: Medini Empire to be self-contained commercial, residential, entertainment and leisure development

Two more big projects worth at least RM2.3 billion are set to take off in the Iskandar Malaysia region in Johor.

Iskandar Investment Bhd (IIB), the developer of Iskandar, and Mammoth Empire Holding Sdn Bhd will invest more than RM2 billion on Medini Empire, a mixed development.

Iskandar Regional Development Authority figures showed that Iskandar has attracted more than RM111 billion in investments as of May 2013.

The IIB-Mammoth Empire project, which has an estimated gross development value of RM4 billion, is due to start in early 2015.

IIB president and chief executive officer Datuk Syed Mohamed Syed Ibrahim said IIB will hold a 40 per cent interest in Empire Iskandar Sdn Bhd, the joint-venture company. 

The remaining will be owned by Mammoth Empire, which is known for its Empire City development in Damansara and Empire Subang in Subang Jaya.

"Mammoth Empire is known for its high-quality, sleek and modern designs and we are confident that its signature style will bring Iskandar Malaysia a step closer towards realising its vision of becoming a world-class liveable city," said Syed Mohamed.

Empire Iskandar will develop two adjoining pieces of land measuring 9.49ha.

To kick off the project, Mammoth Empire and IIB yesterday signed a subscription shareholders' agreement and lease purchase agreement. 

Mammoth Empire executive director Datuk Danny Cheah said Medini Empire will be a self-contained commercial, residential, entertainment and leisure location.

The development will comprise office towers, hotels, serviced apartments, loft offices, retail spaces, a convention centre, a concert hall, a cinema and specialist retail shops.

"We expect project completion in 2018," he said, adding that both parties are fine-tuning the details.

"Like for the hotel, we could either manage or co-manage it as we have the experience. It will depend on the joint-venture partner," said Cheah.

Meanwhile, IIB also inked a lease purchase agreement with Zikay Group yesterday.

Zikay will spend RM300 million on another project in Iskandar and is only the second Bumiputera company with deals there.

It has bought 1.32ha in Medini to develop an integrated project there based on the "business and leisure activities in a park" concept.

The proposed development will consist of SOHO (single office/home office) units, boutique retail units, offices, hotel and serviced apartments.