Al Salam Bank signs real estate development

The project, which has a total value of about 220 million Malaysian Ringgit (approximately US$ 60 million), covers a 240-acre reclamation site and will include residential, commercial and marina developments.

As per the agreement, the Bank will participate with E&O Property Development Berhad (a leading blue chip developer in Malaysia with a land bank of over 850 acres) and CMREF 1 Sdn Bhd (a private real estate fund that is jointly sponsored by CIMB Real Estate Sdn Bhd ( a wholly-owned subsidiary of CIMB Group, the second largest financial institution in Malaysia) and Mapletree Dextra Pte Ltd (a wholly-owned subsidiary of Mapletree Investments Pte Ltd of Singapore) in developing the sea-front bungalow component of the Seri Tanjung Pinang development on Penang Island.

Seri Tanjung Pinang is reputed to be the largest land reclamation waterfront project undertaken to date in Malaysia. A comprehensive mixed-use development, Seri Tanjung Pinang will comprise bungalows, terraced and semi-detached homes, condominiums, commercial and retail precincts, recreational parks, marina and sea-facing esplanades. The development will meet the needs of the rising urban population on Penang Island for middle- to high-end residential properties supported by high quality community facilities and infrastructure.

Al Salam Bank's investment activities include real estate development, corporate investments, and strategic acquisitions. Its real estate development strategy focuses on investing in selected projects in the Middle East and other leading emerging markets, which will contribute to the socio-economic development of the local community.

Commenting on the agreement, Mr. Yousif Taqi, Chief Executive Officer of Al Salam Bank, said:

"We are honoured to be part of this ground-breaking project, and to be working with such distinguished partners in Malaysia. The agreement marks our first real estate investment outside the Middle East, and underlines our strategy to identify rewarding investment opportunities in South-East Asia and other attractive emerging markets."

"This project will enable our clients to diversify their investments outside the MENA region, and will provide them with an ideal opportunity to tap the potential of one of the leading emerging markets in South-East Asia. With its market-oriented economy, highly-educated workforce, and well-developed infrastructure, Malaysia is one of the largest recipients of foreign direct investment among developing countries," Mr. Taqi added.