BSEL signs MoU worth Dhs15bn with Malaysian arm

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 Dhs15bn (15bn Ringit) over a period of 12 years.

The investment of Dhs15bn will be made in three tranches with an interval of four years each. In the first phase, BSEL will invest Dhs2bn (Malaysian Ringit 2bn), followed by Dhs4bn (Malaysian Ringit 4bn) in the second phase and, Dhs9bn (Malaysian Ringit 9bn) 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% 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 catapulted 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 an 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 realizing 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.