MALAYSIA’S BERJAYA LAND TO BUILD US$2.6 BLN JV COMPLEX IN’S KOREA
May 5th, 2008 - Category: ResortBerjaya Land Berhad (KLSE:4219) is teaming up with Jeju Free International City Development Center (JDC) to develop a resort-type residential and commercial complex in Jeju in South Korea at a cost of US$2.6 billion.
Berjaya Land’s wholly-owned unit Berjaya Leisure (Cayman) Limited signed the joint venture agreement with JDC on 29 April 2008.
Under the agreement, Berjaya Jeju Resort Limited will assume the role of master developer for the development of a parcel of land measuring about 74.37 hectares located at Yerae-dong, Seogwipo-si, Jeju Special Self-Governing Province, Berjaya Land said in a statement to Bursa Malaysia on April 29.
The land will be developed into a mixed-use residential and commercial town known as “Yerae Resort-type Residential Complex” over a period of 8 to 10 years. It will comprise 600 mid-rise apartments, 200 villas, 500-room resort hotel and serviced residences and a full-fledged casino with 500 rooms, a commercial facility with shopping, indoor arena and dining functions, a health, medical centre & spa resort, cultural village and other recreational, private and public facilities.
The full fledged casino, which will be the key development, will be constructed in the early phase of the project.
The total cost of the project is estimated at about US$2.6 billion while the gross development value is estimated at around US$3.6 billion subject to the finalisation of the final business plan.
Berjaya Jeju will enter into a sale and purchase agreement with JDC to acquire the land for won 72.10 billion (US$73 million).
After the land has been acquired by Berjaya Jeju, JDC will contribute not less than US$4.5 million worth of improvements to the land in the form of infrastructure such as roads and parks, the statement said.
