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KUALA LUMPUR: All systems go to Bandar Malaysia with the settlement of the deposit for the megaproject by master developer IWH-CREC Sdn Bhd.
The payment of the remaining 8% of the deposit, or RM592.8mil, and an advance of RM500mil to TRX City Sdn Bhd for a 60% stake in the project, has unlocked the next stage, which is the beginning of project development.
The first pile for the project is expected to start early next year for the first 20.23ha, which IWH-CREC aims to complete in four years.
IWH-CREC is the joint venture (JV) of Iskandar Waterfront Holdings Sdn Bhd (IWH), a private vehicle of tycoon Tan Sri Lim Kang Hoo (pictured below), and China Railway Engineering Corp (M) Sdn Bhd (CREC).
Lim told StarBiz that they will target international investors and companies to take part in the development, which will also include a part of the underground city.
The land will sell for no less than RM1,500 per square foot, with all the infrastructure integrated in place.
“We have quite a few investors who are waiting to get in, but due to the motion control order (MCO) due to the coronavirus (Covid-19), it left things pending for a while.
“While we are still in the MCO recovery period until the end of December, we are ready with the entire master plan and we have completed the integrated component,” he said.
To help sell the land, a series of customized incentives will be put in place for investors based on the types of industries and companies that should be attracted to the massive development.
Lim said they have to choose the right developers who can incorporate multinational companies (MNCs), such as those that have developed the cities of Pudong and Shenzhen and the financial district of Beijing in China.
Bandar Malaysia, as envisioned by Lim, will be home to multinational and Fortune 500 companies, the top 100 financial institutions and the best of the medical and tourism sectors.
It will be a city specially designed for Malaysia and smart, to become the model development of a future city equipped with 5G connectivity and artificial intelligence to put the country ahead of the curve in the region.
Lim said the first phase of integrated development will house the multinationals and all the foreign direct investment (FDI) they will bring, together with the Ministry of Finance.
“We look forward to getting started once all the technical details have been done. Many people seem to think that Bandar Malaysia will saturate all of Kuala Lumpur, but no, we are bringing in multinationals, FDI and financial institutions, ”he said.
The first phase at its peak is expected to accommodate about 40,000 people.
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The entire Bandar Malaysia project as a whole is expected to house some 500,000 people who will work and stay there once it is completed.
China Railway Dong Fang Group Sdn Bhd Director and Chairman 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 comfort, but also the best transport systems, infrastructure and smart city management.
“The companies we are trying to incorporate are early stage high-tech and financial companies, which we believe will help in Malaysia’s economic boom,” Shi said.
Following the settlement of RM1.24bil to TRX City yesterday, IWH-CREC will now have to make two more staggered payments of RM960mil each, while the balance will be paid through two bank guarantees, which will be secured by territorial charges.
The joint venture had bid 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 emphasized that there will be great opportunities for the participation of Malaysian and bumiputra companies, while the use of Malaysian construction materials, technologies and local talent will be prioritized.
Bandar Malaysia will host lines 2 and 3 Express Rail Link (ERL), KTM and Mass Rapid Transit (MRT) and the existing ERL railway connecting the KL International Airport (KLIA) and the KL Sentral transportation hub.
The MRT2 project has already designated two stations in Bandar Malaysia, to be completed in 2021, as well as the Setiawangsa-Pantai Expressway (SPE), formerly known as DUKE 3, to be completed in 2021, which is linked to 12 other roads on the KL city, and will align with Bandar Malaysia.
Bandar Malaysia, which will run over 20 years, will shape Kuala Lumpur’s future direction by offering a new livable city with a new lifestyle with modern infrastructure to become an iconic development within the Asean region.
“If you look at Montreal, it was also specially built during the last 60 to 70 years. Therefore, the entire Bandar Malaysia will not be complete in the next 10 years or so.
“It can take 20 to 30 years to finish, depending on the market,” Lim said.
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