(MENAFN - Khaleej Times) UAE-based BSEL Infrastructure Realty FZE (BSEL) has announced that it has signed a Memorandum of Understanding (MoU) with Government of Malaysia's statutory body Iskandar Regional Development Authority (IRDA) for development of the proposed Iskandar metropolis.
Under the MoU, IRDA will help BSEL secure necessary government approvals and licenses from various government authorities to develop 70 million sq feet of land in the Johor Bahru region of Malaysia.
BSEL also announced that it will be investing approximately Dh15 billion (15 billion ringit) over a period of 12 years.
The investment of Dh15 billion will be made in three tranches at an interval of four years each. In the first phase, BSEL will invest Dh2 billion, followed by Dh4 billion in the second phase and, Dh9 billion in the third phase.
Johor Bahru is an attractive proposition for real estate companies for two main reasons: close proximity to Singapore (it is barely 25 minutes drive) and land prices being one/twenty fifth to Singapore mainland prices.
Of the 70 million sq ft of land development, 80 per cent will comprise residential and the rest will be commercial space. This development of land will commensurate with the investment cycle in three tranches. In the first phase 10 million sq ft of land will be undertaken for development, followed by 20 million sq ft of land in the second phase and lastly, 40 million sq ft of land in the concluding phase.
Commenting on the MoU, Ms. Christina Cabading, President -BSEL UAE, said: "We are excited to partner with IRDA on this prestigious project. With this new business avenue, BSEL will be catapult
ed to the next level. Of the five economic zones, BSEL has pledged to invest in the two zones -Financial District and Nusajaya. This is a great opportunity for investors from the UAE to invest in Malaysia and reap the benefits."
IRDA Chief Executive Officer, Dato Ikmal Hijaz Hashim, said: "The collaboration between IRDA and BSEL is significant as it is the first of its kind with the UAE company in Iskandar. IRDA will endeavor to assist and facilitate BSEL in their investments within Iskandar Malaysia and obtain the necessary approvals and incentives (where applicable) from the relevant authorities."
"And I am personally committed to ensure that investors to Iskandar, such as BSEL, get the full support of IRDA," he added.
IRDA is a federal government statutory body responsible for realising the vision and objectives of making Iskandar Development Region a metropolis of international standing. IRDA is the sole authority empowered to plan, promote, facilitate and undertake development in the region.