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Wong & Partners Advised CIMB Investment Bank And Maybank Investment Bank On Murabahah Term Financing For Cititower’s KLCC Commercial Development.

28 April, 2015

 

Wong & Partners, a member firm of Baker & McKenzie International in Malaysia, advised CIMB Investment Bank Berhad and Maybank Investment Bank Berhad on a 20-year Commodity Murabahah term financing amounting to MYR 3.2bn, meant to partially fund a proposed mixed commercial development in Kuala Lumpur City Centre (“KLCC“). This is one of the largest Islamic financings in Malaysia in recent years.


The two banking groups, who are the mandated lead arrangers and mandated bookrunners of the financing, will release the financing in various tranches. The project’s sponsor, Cititower Sdn Berhad (“Cititower“), is a 50:50 joint venture between KLCC (Holdings) Sdn. Bhd. and QD Asia Pacific Ltd., a subsidiary of Qatari Diar Real Estate Investment Co.


Partner Mark Lim, who heads the finance and projects practice, led the team to advise the banks on the financing. 


“This deal is very significant in Malaysia where property financing rarely exceeds the billion Ringgit mark, particularly more so in today’s challenging economic environment. The development project not only validates the value-add of this parcel of development to KLCC, but is a sign that clients are increasingly looking at Islamic financing solutions as a popular source of funding. We are very pleased to have had the opportunity to be involved in this transaction.” said Mark.


The project commenced in January 2012, and is expected to be completed by mid-2020. The estimated total net lettable area is 2.84 million square feet, consisting of 1.72 million square feet of Grade A office tower, 0.65 million square feet of hotel tower and 0.47 million square feet of retail podium.

 

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