By Sharen Kaur
sharen@nstp.com.my
Published in NST on December 14, 2012
At Educity, IIB has built Newcastle University, the University of Southampton Malaysia campus, Raffles University Iskandar, Marlborough College and Raffles American School, investing around RM600 million.
IIB is currently building Reading University and Multimedia University, which would bring total investments in Educity to more than RM700 million, Syed Mohamed said.
He added that majority of the universities are currently owned by IIB and on long-term lease to existing operators.
sharen@nstp.com.my
Published in NST on December 14, 2012
BUYING INTEREST: Local and European fund managers, and asset management firms have sounded out IIB on possible sales
ISKANDAR Investment Bhd (IIB) is mulling the possibility of selling some of its operating assets in Johor to help fund the next stage of its massive development plan in the area.
Business Times was told that both local and European fund managers, and asset management firms have sounded out IIB on possible sales of the assets.
In the event IIB does indeed sell some of the assets, it would be a first time for the company, which is 60 per cent owned by Khazanah Nasional Bhd.
The other shareholders of IIB, which was set up in 2006 as a strategic developer of catalytic projects in Iskandar Malaysia, are Employees Provident Fund and Kumpulan Prasarana Rakyat Johor Bhd, who each owns a 20 per cent stake in the company.
Analysts point out that the landscape in Johor is changing very quickly, with another Kumpulan Prasarana Rakyat-linked company also deciding to directly sell land to a third party, instead of entering into a joint venture.
A week ago, Iskandar Waterfront Holdings Sdn Bhd, a 40 per cent unit of Kumpulan Prasarana Rakyat, inked a deal to sell some 55ha of land for nearly RM900 million to Hong Kong-listed Country Garden Holdings.
Iskandar Waterfront is 60 per cent controlled by tycoon Tan Sri Lim Kang Hoo.
"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," IIB president and chief executive officer Datuk Syed Mohamed Syed Ibrahim said.
Syed Mohamed said that going forward, because of such request, IIB can package the sale of new income recurring assets with yield that will match their expectation.
"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," he told Business Times in an interview.
IIB is developing four clusters - education, driven by Educity; leisure and tourism, led by LegoLand; healthcare and wellness, with Gleneagles Medini Hospital being the key driver; and creative development, with Pinewood Iskandar Malaysia Studios as the catalytic project.
Iskandar Malaysia, one of the country's core special economic zone, is seeking to be self-sufficient in its future capital expenditure.
The Iskandar project has thus brought in committed investments to the tune of RM105.13 billion over the past six years.
"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," Syed Mohamed said.
Pressed on the assets which have attracted third parties, Syed Mohamed said a few parties are interested in its education offering.
ISKANDAR Investment Bhd (IIB) is mulling the possibility of selling some of its operating assets in Johor to help fund the next stage of its massive development plan in the area.
Business Times was told that both local and European fund managers, and asset management firms have sounded out IIB on possible sales of the assets.
In the event IIB does indeed sell some of the assets, it would be a first time for the company, which is 60 per cent owned by Khazanah Nasional Bhd.
The other shareholders of IIB, which was set up in 2006 as a strategic developer of catalytic projects in Iskandar Malaysia, are Employees Provident Fund and Kumpulan Prasarana Rakyat Johor Bhd, who each owns a 20 per cent stake in the company.
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Analysts point out that the landscape in Johor is changing very quickly, with another Kumpulan Prasarana Rakyat-linked company also deciding to directly sell land to a third party, instead of entering into a joint venture.
A week ago, Iskandar Waterfront Holdings Sdn Bhd, a 40 per cent unit of Kumpulan Prasarana Rakyat, inked a deal to sell some 55ha of land for nearly RM900 million to Hong Kong-listed Country Garden Holdings.
Iskandar Waterfront is 60 per cent controlled by tycoon Tan Sri Lim Kang Hoo.
"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," IIB president and chief executive officer Datuk Syed Mohamed Syed Ibrahim said.
Syed Mohamed said that going forward, because of such request, IIB can package the sale of new income recurring assets with yield that will match their expectation.
"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," he told Business Times in an interview.
IIB is developing four clusters - education, driven by Educity; leisure and tourism, led by LegoLand; healthcare and wellness, with Gleneagles Medini Hospital being the key driver; and creative development, with Pinewood Iskandar Malaysia Studios as the catalytic project.
Iskandar Malaysia, one of the country's core special economic zone, is seeking to be self-sufficient in its future capital expenditure.
The Iskandar project has thus brought in committed investments to the tune of RM105.13 billion over the past six years.
"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," Syed Mohamed said.
Pressed on the assets which have attracted third parties, Syed Mohamed said a few parties are interested in its education offering.
At Educity, IIB has built Newcastle University, the University of Southampton Malaysia campus, Raffles University Iskandar, Marlborough College and Raffles American School, investing around RM600 million.
IIB is currently building Reading University and Multimedia University, which would bring total investments in Educity to more than RM700 million, Syed Mohamed said.
He added that majority of the universities are currently owned by IIB and on long-term lease to existing operators.
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