PETALING JAYA: Axis Group and Johor-based AME Group will together invest RM600 million to develop a 230-acre (93.08ha) industrial city in the flagship Zone E of Iskandar Malaysia in Johor.
The development which was officially launched yesterday will be under the brands – “i-PARK” and “SME CITY”.
The project is a 50-50 joint venture (JV) between Axis and AME Group’s AME Construction Sdn Bhd.
The i-PARK brand will house multinationals while the SME CITY is being developed keeping in mind the small and medium enterprises.
Axis manages the Axis Real Estate Investment Trust (REIT), the first real estate investment trust listed on the Malaysian stock exchange.
“The project is through an equity ended funding and our principal bank is Malayan Banking Bhd,” the JV firm’s executive director Stewart Labrooy (photo) told The Malaysian Reserve when asked about the funding of the development.
He added that the launch for the SME CITY and third phase of i-PARK will be done next week.
The project site is 7.7km away from Senai International Airport, 35km from Tanjong Pelepas port and within the Kulaijaya township. The 230-acre development covering i-PARK phases 1, 2 and 3 and
SME CITY is located in the rapidly growing Indahpura township which has a large residential component . The construction is expected to be completed by 2014, the company said in the statement.
Iskandar Malaysia, the new economic growth region in Southern Johor, is the new growth area for developers. In fact, the Johor property market also benefited from Iskandar as demand for high-end residential properties are on the rise in south Johor in recent years.
Among the notable projects worth mentioning include the Johor State New Administrative Centre in Kota Iskandar, Legoland Malaysia Theme Park, Johor Premium Outlets and Newcastle Medical University Malaysia.
Construction of new highways and upgrading of existing roads has also improved accessibility and connectivity within Iskandar.
According to Iskandar Regional Development Authority, from 2006 until Dec 31, 2012, Iskandar had received RM106.3 billion cumulative committed investments of which 63% are from domestic investors and 37% from foreigners.