Malaysia’s Iskandar Waterfront plans to raise $1.13b to develop land bank: Report

Malaysia's Southern Economic Corridor, Iskandar Malaysia, in the Johor state.

Iskandar Waterfront City Bhd is planning to raise $1.13 billion (MYR 5 billion) via convertible bonds to develop the real estate that it is acquiring in addition to its existing plan of secondary listing in Hong Kong or China.

Iskandar Waterfront City, a Bursa-listed unit of Iskandar Waterfront Holdings which recently announced a buy out offer for the listed unit, is also looking to raise about $338 million this year by issuing new shares to pare its debt.

The company’s shares have spiked over 200 per cent this year as it plans to create a company with land assets worth $10.67 billion (MYR47 billion), according to the report from Bloomberg in The Edge on Thursday.

The merger between Iskandar Waterfront Holdings and Iskandar Waterfront City is expected to complete this year which will give the parent company the listing status. After that Iskandar Waterfront is targeting the secondary listing within the next twelve months.

According to a report from Reuters, Iskandar’s executive vice chairman Lim Kang Hoo had said that the plans for the secondary listing will materialise when the merged company’s market capitalisation hits MYR30 billion.

The developer has about 7,400 acres of land in Johor which has in recent years got unmatched attention from investors after Malaysia worked towards leveraging on the region by building Iskandar Malaysia special economic zone as it borders Singapore.

The developer has partnered with Singapore’s Temasek Holdings Pte Ltd and China’s Greenland Group to develop parts of Johor and is in talks with more parties for selling the land.

In 2015 it bought a 60 per cent stake in Bandar Malaysia with China Railway Engineering Corp. Bandar Malaysia is the project in Kuala Lumpur that is meant to host terminals for the Singapore-Kuala Lumpur high-speed rail.

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