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Tuesday, November 18, 2008

Malaysian builders plan RM11b China development

HUGE DEAL: Tee(left) and Sui showing the documents of agreement while Zaini(second from left) and Gu look on.

A group of Malaysian builders plans to build commercial and residential properties with development value of up to RM11 billion in Shenyang, China.

The consortium signed a memorandum of understanding with the Shenyang Province authorities in Kuala Lumpur yesterday.

A special purpose vehicle, known as Shenyang-Malaysia Development Sdn Bhd (ShenMas), has been formed to undertake the conceptual planning, land acquisition, funding issues and feasibility studies.

The project will take place in the Shenyang Finance and Trade Development Zone (SYFTD).

The proposed development, themed "Modern Islamic Lifestyle", is expected to be completed within five years.

ShenMas executive director Datuk Lim Kim Wah said a definitive agreement was expected to be signed in June next year.

"The project is expected to start by the end of next year. We will form a consortium and Bina Puri will be one of the companies," he told a news conference after the signing between ShenMas and the Administrative Committee of Shenyang Province.

At the signing, ShenMas was represented by its chairman, Senator Tan Sri Tee Hock Seng, and the Shenyang authority, by vice-director of SYFTD administrative committee, Sui Zhong Qing.

The signing was witnessed by the Economic Planning Unit's head of special unit for overseas project, Tan Sri Zaini Omar, and the Chinese embassy's head of mission, Gu Jing Qi.

The project will be developed on a 17.96ha site in one of the most centralised Muslim community living areas in China.

Shenyang is the capital city of Liaoning Province. The province is located south of northeast China, which has about 100,000 Muslims.

Lim, who is the former group chief executive officer (CEO) of Bandar Raya Development Bhd and Magnum Corp Bhd, said that about 30 per cent of the commercial properties will be sold to foreigners and the rest to locals when the development is completed.

Meanwhile, Islamic Banking and Finance Institute Malaysia (IBFIM) managing director and CEO Datuk Dr Adnan Alias said he did not expect any problems in financing the project.

He said the project will use syariah-compliant financing. To date, AmInvestment Bank Group and CIMB Islamic Bank Bhd have issued letters of support for the project.

IBFIM is the syariah adviser to the proposed development.

The project was made possible because of the close rapport between the Kuala Lumpur Chinese Assembly Hall (KLCAH) and the Shenhe district authority in Shenyang.

In August this year, the KLCAH organised a trip to Shenyang, which was led by Adnan.

The Shenhe authority said it chose the Malaysian group instead of groups from Singapore and Hong Kong which had approached the authority to develop the land because of Malaysia's leadership in the international Islamic finance sector.

By Business Times (by Hamisah Hamid)

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