In a first-ever joint venture between the neighboring sovereign wealth funds, Singapore’s Temasek Holdings Pte Ltd and Malaysia’s Khazanah Nasional Bhd are planning RM30 billion (US$9.86 billion) worth of cross-border development projects in Singapore and the Iskandar Malaysia region.

Business Times reports a large portion of the money invested will be in Singapore, with Khazanah owning 60% of a new joint venture project called M+S Pte Ltd with a Gross Development Value (GDV) of RM27 billion ($8.87 billion). The development, in Marina South and Ophir Rochor, will be a mixed-use residential, office, retail and hotel complex of over 500,000 square meters in gross floor area.

On the Malaysian side, Khazanah and Temasek will be equal partners in a RM3 billion ($986 million) GDV project named Pulau Indah Ventures Sdn Bhd with a gross floor area of 1.37 million square meters starting in Johor’s Medini North and the Heritage Cluster at Medini Central. The project, in the vast Iskandar Malaysia development region bordering Singapore, will “build on the momentum” of the development’s existing and planned projects with commercial, retail, health and residential facilities, many of which Khazanah has played a part in since the beginnings of Iskandar in 2006.

The two government-controlled companies will work closely with established real estate development firms in both countries, like Malaysia’s UEM Land Holdings Bhd (Khazanah’s property arm) and Singapore’s Mapletree (part of Temasek’s portfolio) and CapitaLand.

source & article: Business Times