Indian firm to invest in Johor cybercity

Indian firm to invest in Johor cybercity

 

Sunil Mantri pumps US$100m into Bandar MSC Cyberport in Kulai

 

(KUALA LUMPUR) India’s Mumbai-based Sunil Mantri Realty Ltd (Sunil Mantri) plans to pump in some US$100 million to participate in the development of Bandar MSC Cyberport in Kulai, the first Multimedia Super Corridor (MSC) cybercity in Johor, local media reported yesterday.

 

Recently, the Indian property developer signed a memorandum of understanding (MOU) with MSC Cyberport Sdn Bhd, a public-private partnership to develop, construct, market and fund Bandar MSC Cyberport.

 

The Indian company signed the MOU to jointly develop Bandar MSC Cyberport, a RM1.16 billion (S$489.9 million) development, MSC Cyberport chief executive officer Ganesh Kumar Bangah said.

 

‘The US$100 million investment from Sunil Mantri will be injected to develop Phase 1 of Bandar MSC Cyberport, covering a size of 13.2ha. Work on the project is expected to start at the end of the year,’ the New Straits Times quoted Mr Ganesh as saying.

 

This foreign direct investment (FDI) is significant for the development of Bandar MSC Cyberport as it will give the development international credibility and recognition from Indian multinational companies (MNCs) that are already clients or are familiar with Sunil Mantri’s successful developments in India, Mr Ganesh said.

 

‘This will jump-start foreign information technology (IT) investments in Bandar MSC Cyberport,’ he said.

 

Sunil Mantri and MSC Cyberport will cooperate to develop Bandar MSC Cyberport, and does not rule out the possibility of the establishment of a joint-venture company to carry out the project, he said.

 

‘We are in the midst of finalising the details of a special purpose vehicle (SPV) to conduct the development and will make the announcement on the set-up of the SPV in due course,’ he said.

 

Elaborating on Bandar MSC Cyberport, Mr Ganesh said that the project is a 60 ha information, communication and technology (ICT) city development located in Kulai.

 

‘It will be a mixed development with residential, commercial and ICT spaces targeting the IT operations of MNCs, while developing local technology companies and technopreneurs. ‘The cybercity will be ready in phases, starting end of 2008 to 2009,’ he said.

 

MSC Cyberport was established to create a global ICT business hub, with a world-class living environment for ICT companies worldwide within Johor. This is in line with the government’s MSC Malaysia initiative.

 

The cybercity at present covers two designated locations, namely Menara MSC Cyberport and Bandar MSC Cyberport.

 

It is envisioned that these two hubs will serve as a vehicle to initiate and facilitate the growth of ICT and knowledge-based industries in Johor.

 

It is based on the hub and spoke concept, each having its own unique strength and cost-effective base for ICT companies targeting emerging markets in the Asia-Pacific region. — Xinhua

 

Source: Business Times

Soilbuild clinches JTC award to build stack-up factory

Soilbuild clinches JTC award to build stack-up factory

 

By EMILYN YAP

 

 

TO encourage private sector participation and promote an active industrial property market, JTC Corporation yesterday awarded the development of its stack-up factory to Singapore Exchange-listed Soilbuild Group Holdings.

 

 

This is the first time JTC has awarded such a project to a private developer.

 

Soilbuild has won the tender to build, own and operate a business facility on a site at Tanjong Kling, with a land area of 565,800 sq ft and a maximum gross floor area of 1.41 million sq ft. The site is on a 30-year lease, with an option to renew for a further 30 years.

 

A five-storey development is slated for completion by early 2010. It will comprise 45 modular and regular-shaped units, with sizes ranging from 23,700 to 60,300 sq ft. Total development cost is likely to be around $208 million.

 

Soilbuild expects the development, which is near Jurong Island, to cater to large corporations or MNCs in the marine engineering, oil and gas exploration and petrochemical-related industries.

 

Another two bidders took part in the concept and fixed-price tender. According to JTC, Soilbuild’s proposal stood out because of enhanced features in the concept, such as a layout that facilitates heavy vehicular movement within the building.

 

Soilbuild’s win complements the emergence of its business space portfolio as a significant new growth engine. ‘The expanding portfolio of business properties will enable us to tap on the robust demand from investors and grow our recurrent income stream in the coming years to support a progressive dividend policy,’ said executive director Low Soon Sim.

 

Soilbuild now has almost 3.3 million sq ft of business space projects in the pipeline. Shares of the developer closed unchanged at 95 cents yesterday.

 

In its statement yesterday, JTC noted an increase in demand for industrial space in the past three years due to robust growth in the manufacturing sector.

 

‘This momentum is expected to continue as more investment projects are anchored in Singapore, creating downstream opportunities for supporting industries,’ it said.

 

To optimise land use, JTC has been exploring ways to improve the design of its stack-up factory development to better meet the needs of various industries.

 

Source: Business Times