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Kuala Lumpur, 14 February 2008 - A Memorandum of Understanding (MOU) was signed today between Cultural Cluster Sdn. Bhd. (CCSB) and Eastern & Oriental Berhad (E&O) to form a joint venture company for the development of a 195 acre parcel of land within Node 1 of the Iskandar Development Region.
CCSB is a special purpose development vehicle majority owned by Al-Nibras 2 Limited, a Labuan-based private fund company managed by Kuwait Finance House (Labuan) Berhad (KFHLB), which is in turn a wholly-owned subsidiary of Kuwait Finance House (Malaysia) Berhad (KFHMB). The other shareholders of CCSB are South Johor Investment Corporation (SJIC) with a 30% stake whilst the remaining 10% is held by Jumeirah Capital via Alpha Four Limited.
Under the terms of the MOU, CCSB and E&O will each hold 50% share in a joint-venture company with the mandate to develop the 195 acres of land, known as the Heritage District, on an exclusive basis. The Heritage District forms part of the 624 acre Cultural Cluster within Node 1 of the IDR which comprises 2,228 acres in total.
Node 1 is conceptualised as an international mixed use development of commercial properties, leisure and tourism as well as luxury residential properties. Expected to span over 15-20 years with a Gross Development Value (GDV) of approximately USD20 billion, Node 1 encompasses several zones namely City Centre, Financial District, Golf Village, Amusement Bay, Residential District, Medical & Wellness Village and the Cultural Cluster District.
On 28 August 2007, the Government of Malaysia awarded the Concession for a 99-year lease to CCSB to develop the Cultural Cluster District. Three distinct zones form the Cultural Cluster, namely the Logistic Village, Creative Park and Heritage District. The MOU signed today to jointly develop Heritage District is the first partnership between CCSB and a local Malaysian property company in this IDR concession. The shared vision is to create an integrated world-class residential development of luxury landed and strata properties that will serve as premier homes for those living and working in Rim City, as well as the ultimate international property investment location.
"The partnership with E&O is part of KFHMB's plans to increase its presence in other areas outside of the Klang Valley and reflects the important role of the Bank in infrastructural developments in Malaysia. The underlying strategy is to capture various local, regional and international market segments in view of the strategic positioning of the development in key target sectors," said Dato' K. Salman Younis, Managing Director of KFHMB. "We are very optimistic of the many key drivers that will ensure the success of shaping Johor into a dynamic economic region where the overall favourable domestic growth in 2007 is expected to prevail in 2008. Interestingly, the yearly average economic growth rate for the IDR is expected to be higher than for Malaysia or Singapore between 2005 and 2025."
Datuk Azizan Abdul Rahman, Chairman of E&O Group said, "We are very honoured that Kuwait Finance House via CCSB has chosen E&O as their partner for the Heritage District. As a developer of premier properties in prime locations, E&O is also known as a custodian of heritage with our historic luxury E&O Hotel in Penang, and also appreciating the best of East and West, classic and contemporary, in our architectural style and designs at E&O's masterplanned Seri Tanjung Pinang development. The E&O Group sees vast potential for the IDR and we are certainly excited to be now part of it" he added.
About Kuwait Finance House (Labuan) Berhad
Kuwait Finance House (Labuan) Berhad (KFHLB) is a 100% owned subsidiary of Kuwait Finance House (Malaysia) Berhad and was incorporated as KFH (Labuan) Berhad, on 25 August 2005. After being granted an offshore banking licence by the Labuan Offshore Financial Services Authority (LOFSA) on 8 December 2005, KFHLB now operates as an offshore bank under the Labuan Offshore Banking Act 1990.
The offshore banking business offered to KFHLB's customers complements the businesses of its parent company Kuwait Finance House (Malaysia) Berhad (KFHMB) and of Kuwait Finance House-Kuwait. A full range of services offered include Foreign Currency Deposits, International Trade Financing, Short/Medium/Long Term Syndication Facility, Funds Investment and Securities Trading.
About Eastern & Oriental Berhad
Eastern & Oriental Berhad (E&O) is listed on the Main-board of Bursa Malaysia. The Company has interests in three core business activities namely hospitality & lifestyle, property development and property investment.
E&O undertook the meticulous refurbishment and upgrading of the heritage Eastern & Oriental Hotel (E&O Hotel) as well as Lone Pine Hotel in the late 1990s. Since it was established by the Sarkies Brothers in 1885, E&O Hotel has charmed travellers from near and far, creating a reputation to match its sister hotels ¿ The Raffles, Singapore and The Strand, Rangoon ¿ also founded by the Sarkies. Lone Pine Hotel is the oldest beach hotel, established in 1948, along Penang Island's famed tourist strip of Batu Ferringhi. There are ongoing efforts to capitalise on the hotel management expertise currently available, and extend this service to enable the Group to eventually manage a portfolio of hotels and resorts within Malaysia as well as around the region.
Last year, E&O embarked on a new food and beverage (F&B) venture, via the acquisition of a substantial stake in The Delicious Group, which currently operates Delicious restaurants in One Utama (Petaling Jaya), Bangsar Village II and Marc Service Residence (Kuala Lumpur) as well as D'lish in Bangsar Village I and Mid Valley Megamall. With F&B to be closely linked to lifestyle in the larger mindset, synergies are evident in strategic positioning of Delicious restaurants in the prime commercial/retail properties which E&O will retain, providing cuisines that are in line with the lifestyle of its urban developments.
E&O Property Development Berhad (E&OProp) is the property development arm of E&O. Prior to the formation of E&OProp, E&O undertook several prestigious property projects within Kuala Lumpur. Along Jalan Ampang's Embassy Row, E&O completed residential developments such as Sri Se-Ekar and 202 Desa Cahaya (202 DC), whilst at nearby Kampung Warisan, Malaysia's celebrated cartoonist Datuk Lat successfully the heart of the capital.
Presently, E&OProp focuses on building premium homes within prime locations of Klang Valley and on Penang Island. E&OProp has recently completed the high-end condominium Dua Residency, located within the vicinity of the Kuala Lumpur City Centre (KLCC) as well as Idamansara, located in Kuala Lumpur's highly prized residential address of Damansara Heights. Seventy Damansara is another one of E&OProp's signature development with 12 exclusive detached homes within a gated and guarded community. On Penang Island, the masterplan seafront development Seri Tanjung Pinang is situated minutes from Millionaires' Row of Gurney Drive, underpinning E&OProp's consistent business strategy of focusing on development in prime areas where demand is prevalent.
The newly-established Property Investment division's core mandate is the acquisition of select landbanks and properties that provides E&O with steady, recurring income flow and opportunities for capital appreciation in the longer term.
CCSB is a special purpose development vehicle majority owned by Al-Nibras 2 Limited, a Labuan-based private fund company managed by Kuwait Finance House (Labuan) Berhad (KFHLB), which is in turn a wholly-owned subsidiary of Kuwait Finance House (Malaysia) Berhad (KFHMB). The other shareholders of CCSB are South Johor Investment Corporation (SJIC) with a 30% stake whilst the remaining 10% is held by Jumeirah Capital via Alpha Four Limited.
Under the terms of the MOU, CCSB and E&O will each hold 50% share in a joint-venture company with the mandate to develop the 195 acres of land, known as the Heritage District, on an exclusive basis. The Heritage District forms part of the 624 acre Cultural Cluster within Node 1 of the IDR which comprises 2,228 acres in total.
Node 1 is conceptualised as an international mixed use development of commercial properties, leisure and tourism as well as luxury residential properties. Expected to span over 15-20 years with a Gross Development Value (GDV) of approximately USD20 billion, Node 1 encompasses several zones namely City Centre, Financial District, Golf Village, Amusement Bay, Residential District, Medical & Wellness Village and the Cultural Cluster District.
On 28 August 2007, the Government of Malaysia awarded the Concession for a 99-year lease to CCSB to develop the Cultural Cluster District. Three distinct zones form the Cultural Cluster, namely the Logistic Village, Creative Park and Heritage District. The MOU signed today to jointly develop Heritage District is the first partnership between CCSB and a local Malaysian property company in this IDR concession. The shared vision is to create an integrated world-class residential development of luxury landed and strata properties that will serve as premier homes for those living and working in Rim City, as well as the ultimate international property investment location.
"The partnership with E&O is part of KFHMB's plans to increase its presence in other areas outside of the Klang Valley and reflects the important role of the Bank in infrastructural developments in Malaysia. The underlying strategy is to capture various local, regional and international market segments in view of the strategic positioning of the development in key target sectors," said Dato' K. Salman Younis, Managing Director of KFHMB. "We are very optimistic of the many key drivers that will ensure the success of shaping Johor into a dynamic economic region where the overall favourable domestic growth in 2007 is expected to prevail in 2008. Interestingly, the yearly average economic growth rate for the IDR is expected to be higher than for Malaysia or Singapore between 2005 and 2025."
Datuk Azizan Abdul Rahman, Chairman of E&O Group said, "We are very honoured that Kuwait Finance House via CCSB has chosen E&O as their partner for the Heritage District. As a developer of premier properties in prime locations, E&O is also known as a custodian of heritage with our historic luxury E&O Hotel in Penang, and also appreciating the best of East and West, classic and contemporary, in our architectural style and designs at E&O's masterplanned Seri Tanjung Pinang development. The E&O Group sees vast potential for the IDR and we are certainly excited to be now part of it" he added.
About Kuwait Finance House (Labuan) Berhad
Kuwait Finance House (Labuan) Berhad (KFHLB) is a 100% owned subsidiary of Kuwait Finance House (Malaysia) Berhad and was incorporated as KFH (Labuan) Berhad, on 25 August 2005. After being granted an offshore banking licence by the Labuan Offshore Financial Services Authority (LOFSA) on 8 December 2005, KFHLB now operates as an offshore bank under the Labuan Offshore Banking Act 1990.
The offshore banking business offered to KFHLB's customers complements the businesses of its parent company Kuwait Finance House (Malaysia) Berhad (KFHMB) and of Kuwait Finance House-Kuwait. A full range of services offered include Foreign Currency Deposits, International Trade Financing, Short/Medium/Long Term Syndication Facility, Funds Investment and Securities Trading.
About Eastern & Oriental Berhad
Eastern & Oriental Berhad (E&O) is listed on the Main-board of Bursa Malaysia. The Company has interests in three core business activities namely hospitality & lifestyle, property development and property investment.
E&O undertook the meticulous refurbishment and upgrading of the heritage Eastern & Oriental Hotel (E&O Hotel) as well as Lone Pine Hotel in the late 1990s. Since it was established by the Sarkies Brothers in 1885, E&O Hotel has charmed travellers from near and far, creating a reputation to match its sister hotels ¿ The Raffles, Singapore and The Strand, Rangoon ¿ also founded by the Sarkies. Lone Pine Hotel is the oldest beach hotel, established in 1948, along Penang Island's famed tourist strip of Batu Ferringhi. There are ongoing efforts to capitalise on the hotel management expertise currently available, and extend this service to enable the Group to eventually manage a portfolio of hotels and resorts within Malaysia as well as around the region.
Last year, E&O embarked on a new food and beverage (F&B) venture, via the acquisition of a substantial stake in The Delicious Group, which currently operates Delicious restaurants in One Utama (Petaling Jaya), Bangsar Village II and Marc Service Residence (Kuala Lumpur) as well as D'lish in Bangsar Village I and Mid Valley Megamall. With F&B to be closely linked to lifestyle in the larger mindset, synergies are evident in strategic positioning of Delicious restaurants in the prime commercial/retail properties which E&O will retain, providing cuisines that are in line with the lifestyle of its urban developments.
E&O Property Development Berhad (E&OProp) is the property development arm of E&O. Prior to the formation of E&OProp, E&O undertook several prestigious property projects within Kuala Lumpur. Along Jalan Ampang's Embassy Row, E&O completed residential developments such as Sri Se-Ekar and 202 Desa Cahaya (202 DC), whilst at nearby Kampung Warisan, Malaysia's celebrated cartoonist Datuk Lat successfully the heart of the capital.
Presently, E&OProp focuses on building premium homes within prime locations of Klang Valley and on Penang Island. E&OProp has recently completed the high-end condominium Dua Residency, located within the vicinity of the Kuala Lumpur City Centre (KLCC) as well as Idamansara, located in Kuala Lumpur's highly prized residential address of Damansara Heights. Seventy Damansara is another one of E&OProp's signature development with 12 exclusive detached homes within a gated and guarded community. On Penang Island, the masterplan seafront development Seri Tanjung Pinang is situated minutes from Millionaires' Row of Gurney Drive, underpinning E&OProp's consistent business strategy of focusing on development in prime areas where demand is prevalent.
The newly-established Property Investment division's core mandate is the acquisition of select landbanks and properties that provides E&O with steady, recurring income flow and opportunities for capital appreciation in the longer term.
