Qingdao Zhuoyuan Investment's unit, Zhuoda Real Estate Group, will be developing an 18.14-acre plot in Medini North with Iskandar Investment on an 80:20 basis.
 
Seri Kembangan (Selangor): Iskandar Investment Bhd (IIB) and Qingdao Zhuoyuan Investment Holdings will embark on a RM2.5 billion mixed development project in Medini Iskandar Malaysia.

Zhuoyuan's unit, Zhuoda Real Estate Group, will be developing an 18.14-acre plot in Medini North with IIB on an 80:20 basis.

Medini is IIB's flagship development within Johor's Iskandar administrative region.

"This joint venture with Zhuoyuan to develop a residential project in Medini North is close to Legoland Malaysia," IIB president and chief executive officer Datuk Syed Mohamed Syed Ibrahim said.

"We'll need to execute the sale and purchase of the land first before we can start work on the ground. This development will be carried out over the next 10 to 15 years.

"Gross development cost is likely to amount to RM1.85 billion. We hope to reap 20 to 25 per cent profit margin from this venture," he said.

Syed Mohamed was speaking to reporters after the opening of the World Chinese Economic Forum by Deputy Prime Minister Tan Sri Muhyiddin Yassin here yesterday. Also present was Zhuoda chief operating officer Yang Han Qing.

"This is our maiden overseas investment. We're delighted to partner IIB and be the first investor from China to help develop Medini," Yang said.

IIB is owned by Khazanah Nasional Bhd, the Employees Provident Fund and the Johor state government on a 60:20:20 basis.

IIB has achieved considerable milestone. So far, Iskandar Malaysia has managed to attract RM77.82 billion investments. (Business Times -NST)