In a follow-up to an advertisement published in local dailies last week, the key entities behind the 486-acre Bandar Malaysia project in Sungei Besi have stated that locally-based companies will be their first priority in when seeking joint venture partners.
The RM200 billion project is jointly helmed by Ministry of Finance Inc (MoF), Iskandar Waterfront Holdings (IWH) and China Railway Engineering Corp (CREC). The advertisement published last week revealed that the master developer was seeking interested parties to develop the land, either through the purchase of land parcels or single block developments.
While Bandar Malaysia is reaching out to both domestic and foreign developers, its representatives reiterated that “local parties” would be given the “first crack” at pitching for various projects within the mammoth development.
According to CBRE|WTW, which is the appointed transactional advisor for the project, submissions for participating in Bandar Malaysia have already begun pouring in with strong interest shown by both local and foreign developers.
CBRE|WTW said that the submission date will officially end on Oct 21 and the entire process of identifying JV partners will likely be completed by the end of the year.
Bandar Malaysia will see the development of office buildings, hotels, serviced apartments, condominiums, retail spaces and theme parks. The project will have a dedicated MNC regional centre, global business and financial centre, medical and international education hub, a 40-acre central park, an international forum centre and affordable homes.
Overall, Bandar Malaysia is hoping to attract the participation of Malaysian developers, bumiputra companies, government-linked companies, foreign developers, local and foreign joint ventures as well as local and foreign investment funds.
In seeking the right partners, CBRE|WTW said factors that would be considered include the track record, capability and capacity of companies. This, it said, would not be a problem for strong and established local developers.
Keen to work on a “mutually agreeable arrangement”, it said participating developers can either develop a parcel of land on their own or work on an equity stake basis with the master developer.
Bandar Malaysia is 40 per cent owned by MoF, with IWH and CREC holding the remaining 60 per cent. The site is located on the former Sungai Besi air force base and its development is expected to be carried out in several phases over the next 20 years.
Bandar Malaysia will also be home to the much-awaited Kuala Lumpur-Singapore High Speed Rail, as well as a major interchange point for the Express Rail Link, KTM and the Mass Rapid Transit Lines 2 and 3.