SINGAPORE – Mitsui & Co Ltd, one of Japan’s largest general trading companies, has entered into a joint-venture (JV) agreement with Singapore’s business space solutions provider Ascendas and Malaysian property developer UEM Sunrise Berhad to offer build-to-suit (BTS) properties for lease in Nusajaya Tech Park in Iskandar Malaysia.
Nusajaya Tech Park Sdn Bhd (NTPSB) is jointly owned by Ascendas and UEM Sunrise. Nusajaya Tech Park will be developed in phases over nine years, according to its website, and is one of the closest industrial sites to the Malaysia-Singapore Second Link.
The JV marks the first Japanese partnership for industrial parks in Iskandar Malaysia, although Mitsui has already developed an extensive network in Japan, especially in sectors such as industrial property development and leasing.
Ascendas, which is a member of Ascendas-Singbridge group, has had over 30 years of experience and assets under management exceeding S$16 billion.
UEM Sunrise, a Malaysian public-listed company, offers services in macro township development, high-rise residential, commercial retail and integrated developments, as well as property management.
Said Reiji Fujita, Mitsui’s general manager of urban development division: “Japanese companies are increasingly seeking investment and expansion opportunities in South East Asia as part of their globalisation strategies. Our collaboration with two very formidable industry leaders in this market, Ascendas and UEM Sunrise, will cement our position as a preferred partner for Japanese companies seeking growth in this part of the world.”
Mitsui and NTPSB will hold equity stakes of 49 per cent and 51 per cent respectively in the JV entity, according to a press release on Tuesday.
Some 10.7 ha of land will be set aside for the development of BTS properties for lease within the 210-ha large Tech Park as part of their agreement, with total development costs estimated at S$167 million over four years.
Said its press release: “the Mitsui-NTPSB joint venture will provide one-stop solution to companies who prefer to operate in customised facilities on long-term leases, without the hassle and capital expenditure associated with the construction process”.
The BTS project intends to oversee and finance the real estate process for customers, including the design, construction and project management, and also offer integrated industrial, commercial spaces, dormitories, amenities and support facilities – all within Nusajaya Tech Park.
“We welcome Mitsui as a new partner in Nusajaya Tech Park,” said William Tay, chief executive officer of Ascendas South East Asia and director of NTPSB. “Through this new joint venture, our customers in Nusajaya Tech Park will not only benefit from solutions that are customised to their business needs, but also enjoy international standards of business space development and operations as a result of the collective strengths of all three partners.
“We are confident that Nusajaya Tech Park will continue to play an instrumental role in catalysing industrial growth and creating an eco-system of high value-added industries in Iskandar Malaysia.”