Singapore, Malaysian state investors to develop $9.86bn projects

SINGAPORE: State investment firms, Singapore's Temasek and Malaysia's Khazanah, will jointly develop $9.86 billion worth of real estate projects in the two countries, the two said late on Monday. A 60:40 joint venture between Khazanah and Temasek will develop S$11 billion 8.88 billion) worth of projects in six land parcels near Singapore's central business district, the statement said.

The projects will have office, residential, hotel and retail components. A unit of UEM Land Holdings Berhad, a real estate company within Khazanah's portfolio, and a subsidiary of Temasek-owned Mapletree Investments have been appointed to oversee the marketing and development of the project at Marina South.

For the Ophir-Rochor site in Singapore, UEM Land and a subsidiary of CapitaLand will oversee the marketing and development.

Separately a 50:50 joint venture between the two state investment firms will also develop 3 billion ringgit ($986 million) worth of property projects in Malaysia's Iskandar region.

The developments are part of a broad agreement last year between the two countries that saw Malaysia give up its control of railway land that runs through Singapore.

In exchange for land currently occupied and controlled by Malaysia's railway operator, Singapore gave a Malaysia-Singapore joint venture six land parcels near the city-state's central business district.

Copyright Reuters, 2011