Melaka Gateway Integrated World-Class Development
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Melaka Gateway Integrated World-Class Development The World’s 1st & ONLY combined Tourism, Lifestyle, Business and Integrated Port development. DEMANDDEMAND DRIVEN DRIVEN AND AND SUSTAINABLE SUSTAINABLE May 2017 Development Sponsor: Advisors: Development Valuation Economic Master Planning Strategic Strategy Assessment Benefits Advisor ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) World Class Investment Opportunity A unique combination for sustainable investment returns The world’s first and only combined tourism, lifestyle, business development, integrated with port and maritime industries Melaka Gateway is the most sustainable development to attract investment in Asia. A Malaysian Government National Project, and the Chinese Government have granted One Belt One Road (OBOR) and Silk Maritime Route status to the Melaka Gateway project. The full range of prime, high revenue land use incorporated into a world class master plan by multi national consultants Broadway Malyan, allows for the creation of an effective platform for investment, new business and large scale economic growth. Globally renowned advisors PwC have commented on the positive investment and revenue generating capabilities of Melaka Gateway; providing our strategic development business plan. Furthermore, international property consultants JLL have provided a very positive valuation assessment for the development, based on the connectivity, infrastructure, master plan, and land use investment opportunities. Melaka Gateway is not a ‘speculative’ real estate project, this is a unique ‘industry-led’ strategy combined with tourism, commercial, and industrial land use. Melaka Gateway will become the new Central Business District (CBD) for the State of Melaka, being fully self sustaining due to its strategic location half-way between two great cities of Singapore and Kuala Lumpur. This location becomes even stronger in the near future as world class connectivity is further enhanced with the SG-KL High Speed Rail, new highway links, international cruise terminal, and shipping routes. 1. Embraces National and State interests, strong alignment with NKEAs: This approach provides the significant ‘enablers’ for the Melaka State economy to reposition itself from a predominantly ‘weekend economy’ to a ‘365 day economy’ 2. ‘Industry led’ strategy; this provides sustainable direction and stability for growth, new jobs, and investment, and does not rely on speculative real estate investments. 3. Demand-driven master planning, incorporating & understanding ‘end-user’ requirements. Provision of commercially viable business case that leads the development planning. 4. The comprehensive Port & Maritime industry opportunities provides a cornerstone for sustainable revenues, as the ‘engine room’ for sustainable economic growth. 5. The port and maritime land uses, provide the ‘feeder port’ to the new central belt development corridor along the HSR route, with critical connectivity to those ‘land locked’ developments. 6. Melaka Gateway provides an effective platform for sustainable business generation, new jobs, and economic transformation for the State. “Melaka Gateway is a unique regional catalyst project, and the revenue growth potential for the initial investors is substantial.” Keith Martin, Managing Director, PwC Singapore ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 2 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Position Paper: the Melaka Gateway Investment Opportunity World class development strategy This Paper provides an overview of the investment opportunities in respect of the Melaka Gateway Development Project (“MG”) and related infrastructure projects. It has been prepared for the main development Sponsor and Concession Holder, KAJ Development Sdn Bhd (“KAJ”), and is based on information provided by KAJ, site visits & inspections, meetings with the Chief Minister, Malaysian Ministries and Related Agencies, and other key stakeholders. Complimentary to these information sources, KAJ have also engaged the expert advise and opinions from the following Advisors: World Class Advisors Development PwC Capital Producing the development Strategy Projects & strategy, demand sources analysis, Infrastructure investment memorandums, and strategic business plan advisory Singapore Economic Deloitte Evaluate & forecast socio– Benefits economic benefits at Federal & Kuala Lumpur State levels, including job creation and sustainable development Valuation Jones Lang Assessment of commercial and port Assessment LaSalle development valuation potential for the development Hong Kong Master Broadway Creation of a commercially viable Planning Malyan master plan, effective land use planning, urban design guidelines, London & phasing plans and investment Singapore memorandums Development Ernst & Young Planning and Advising on Company Strategy Kuala Lumpur Potential and Initial Public Offering (IPO) in Stock Exchange of Hong Kong, Singapore and Malaysia ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 3 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Position Paper: the Melaka Gateway Investment Opportunity Overview of the key investment & development opportunities Contents 1 Executive Summary: Melaka Gateway is ‘Investor-friendly’ …. strategically attractive as a compelling proposition for investment, partnerships, and commercial opportunities: the KAJ Development Plan is fully aligned with national development goals, OBOR & Silk Maritime strategies 2 Introducing the Project Sponsor: KAJ Development Sdn Bhd (“KAJ”) 3 Project Description & Development Phasing 4 Master Plan & Concept Overview PME1, PME2, PME3 and PME4 5 Main Assets to be Developed 6 Economic Benefits 7 Development Incentives as the Catalyst for Development 8 Benefits of the ‘Portopolis’ Development Approach 9 Environmental Considerations 10 PwC’s “Cities of Opportunity” Report 2016: …. a comparison with Melaka New City in the future ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 4 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Executive Summary ‘Investor-friendly’ 1 Melaka Gateway project comprises an ‘investor-friendly’, ‘industry-led’ development strategy; promoting Tourism, Lifestyle, SMART-City initiatives, Commercial & Business developments, Deep Sea Port, and a Maritime Industrial Park …. all of which will generate significant economic impact for Melaka & its people 5 Introduction Purpose & objectives of the report Purpose & Objectives These types of incentives provide an important component to effectively attract The key objective is to adopt a investment to strategic developments of partnership environment between public national importance in the Asian Region. and private sectors. In this way we can structure ourselves to achieve the highest To enable Melaka Gateway to achieve possible positive development outcome the required competitive regional for Melaka Gateway. We seek to forge positioning, the project Master long-term sustainable and effective Concessionaire, KAJ Development Sdn partnerships between public sector and Bhd, it’s investors and development private sector; to create a platform of partners have cultivated an efficient and appropriate ‘risk allocation’ and ‘value for effective partnership with the money outcomes’. KAJ has created a Government of Malaysia. viable regional business plan embracing effective collaboration of common goals Experience tells us that successful major between Federal Government, the State developments of national, regional and of Melaka, private sector business and global impact require effective investment, along with the people of partnerships between public and private Melaka; fully aligned with NKEA’s, as well sectors that can only be delivered as economic development targets of the effectively with a long term robust State of Melaka, which can only produce business orientated plan. positive outcomes for overall socio- economic benefits. A key element of the SEZ proposal is that the Melaka Gateway development has This report will demonstrate to all been planned and executed as a stakeholders the unique value proposition Regional Development Project, as of Melaka Gateway. The development is opposed to a ‘developer-driven real a ‘National Project’ and already estate project’, transforming the appreciates and enjoys a range of Melaka State economy from a attractive Government granted predominantly ‘weekend’ economy, development incentives for investment, to a ‘365 day’ economy development and new business. Melaka Gateway: Special Economic Zone Industry-led Strategy for Development that benefits Federal & State Government as well as the local community; a significant catalyst for new sustainable business in the region …. Malaysia’s latest & most vibrant SEZ …. driving the emerging ‘central belt’ of Malaysia …. the catalyst for new HSR urban developments ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 6 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Executive Summary Melaka Gateway is a compelling proposition for investment …. and now is the time Creating the