Bandar Malaysia project’s Phase 1 will feature over 12 world-class towers, with a gross floor area of more than 12 million sq ft.
In an interview with The New Straits Times (NST), Iskandar Waterfront Holdings Sdn Bhd (IWH) Executive Chairman Tan Sri Lim Kang Hoo revealed that the first phase will see the development of several Grade A office towers, serviced apartments, luxury residences and hotels across 20.23ha in four years.
Construction works will commence in June 2021, reflecting the developers’ confidence that the project will spur the country’s economy, reported NST.
“Malaysia needs such a large scale project to prime pump the economy. A project of this nature will attract foreign direct investments (FDIs) and that is what we are aiming for,” explained Lim.
He also dismissed notions that the mega project would only add to the property overhang within the city.
“We have done our homework and property boom-and-bust is a cycle. Statistics show that when there is a bust, the recovery comes within three years and the boom lasts much, much longer,” said Lim as quoted by NST.
“The boom sustains; the bust will overcome.”
In fact, he expects the project to help ease the property overhang situation.
This comes as “thousands of people, including expatriates, will be working on this project in the next four to five years. They will require office space, and a home to stay and they will be looking at the KLCC area as Bandar Malaysia is not too far off from there”.
With the master plan they have put in place, Lim said multinational firms and financial institutions can either buy or lease properties at considerably lower prices compared to other central business districts at neighbouring countries.
Bandar Malaysia’s Phase 1 – which has a gross development value (GDV) of about RM10 million – will kick-off with infrastructure development involving the construction of several highways and roads as well as the installation of water and power supply, costing several hundred million ringgit.
Lim shared that IWH-CREC Sdn Bhd (JVCo) will invite both local and overseas developers, consultants, investors and contractors to submit proposals for the development.
“We are doing a pre-qualification for all international and local firms, including Bumiputera companies to be registered for participation in this project. We will select the best,” he said.
South East Asia’s largest development project, Bandar Malaysia will be developed on 194.5ha land, with IWH-CREC as master developer. It will sit on the site of former Royal Malaysian Air Force base within Sungai Besi.
IWH-CREC owns a 60% stake in Bandar Malaysia Sdn Bhd, while the other 40% is held by the government through the Ministry of Finance Incorporated’s fully-owned subsidiary TRX City (TRXC) Sdn Bhd.
IWH-CREC is a joint venture between IWH and China’s state-owned China Railway Engineering Corp (CREC). IWH holds a 60% stake in the joint venture, while CREC owns the other 40%.
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