Malaysian and Singapore funds develop joint investment

Khazanah Nasional Berhard, the investment holding arm of the Government of Malaysia, and Singapore’s Temasek Holdings have joined forces in their first joint development investment.The organisations have formed two strategic joint companies to invest in real estate in Singapore and Malaysia.

Khazanah, is the Malaysian state agency responsible for strategic cross-border investments, and has stakes in more than 50 companies with assets of more than $35 billion.

Temasek Holdings, which is headquartered in Singapore but has 12 affiliates and offices in Asia and Latin America, invests about 11 per cent of its $150 billion portfolio in a sector classified as “life sciences, consumer and real estate”.

The two investment companies will form M+S Pte Ltd, which is owned 60:40 by Khazanah and Temasek, to develop land parcels in Marina South and Ophir-Rochor in Singapore.

Another firm, Pulau Indah, a 50:50 joint venture between Khazanah and Temasek, will develop projects in Iskandar Malaysia in Johor. Khazanah and Temasek have worked together for more than a year to identify suitable sites in Iskandar Malaysia for joint commercial development.

It is the first joint development investment between the two investment firms, which was the support of the Prime Ministers of Malaysia and Singapore.