Malaysia - IIB To Fund Next Stage Of Development With Asset Sales

December 17, 2012

The Iskandar Investment Board (IIB) is moving to sell operating assets in Johor in order to support the next stage of development in Iskandar Malaysia.



A change of strategy is being adopted by IIB in order to find greater flexibility in the next stage of development. The Board said that it is willing to sell some of its operating assets in Johor in order to support the development of several new clusters in Iskandar Malaysia.

“What we would get is immediate sale of our properties, which will be quite useful to fund our next catalytic projects. The next stage of growth for IIB would be self-driven,” said Datuk Syed Mohamed Syed Ibrahim, President and CEO of IIB.

“All the while we thought we would fund catalyst projects using our own sources. Not anymore. We see that opportunities created as a result of what we are doing, we will get the necessary income,” he added.

IIB is undertaking the development of four clusters in Iskandar Malaysia, which has recently been highlighted by Singapore's Senior Minister of Trade and Industry Lee Yi Shyan as “a region of innovation and entrepreneurship.”

The clusters are in education – spearheaded by Educity; leisure and tourism – led by Legoland Malaysia; healthcare and wellness – led by Gleneagles Medini Hospital; as well as creative development – to be driven by Pinewood Iskandar Malaysia Studios.

Construction is proceeding for the Multimedia University and Reading University, projects which are expected to reap more than RM 700 million in investment for Educity, said IIB.

Market analysts said that with the high pace of change seen in Johor's landscape, stakeholders are opting to sell land rather than enter into joint ventures. Iskandar Waterfront Holdings Sdn Bhd recently sold 55 ha of land to Chinese property developer Country Garden Holdings for nearly RM 900 million.

“They (the funds and asset management companies) are looking at good-yielding assets within the four clusters that we are developing in the Iskandar region. They asked us if we were selling and we are discussing with them now,” said Tan Sri Lim Kang Hoo, who owns 60% of Iskandar Waterfront.