KUALA LUMPUR: Sepang International Circuit Sdn Bhd (SIC) will call for proposals from property players and investors keen to help it develop a RM7 billion integrated mixed development project around the Formula 1 (F1) circuit in Sepang next year .
Chief executive officer Datuk Razlan Razali said the company expected to commence with the request for proposal (RFP) in the first quarter of next year, upon which a selection process would be undertaken to identify and select the partners.
“For now, I am not able to tie down exactly when the RFP will be issued as it is subject to board approval,” Razlan told Business Times.
The RPF was supposed to be issued in June but had to be postponed due to technical issues.
“We inherited certain technical difficulties, especially land ownership. Now that there are existing agreements between MAHB (Malaysia Airports Holdings Bhd), MOF (Minister of Finance Inc) and SIC, hopefully this matter will be resolved by year-end.
“Once the land situation is addressed, we can activate our master plan,” Razlan said.
Business Times understands that SIC is negotiating with several parties on the possibility of jointly developing the multi-billion project on a 200ha site currently planted with oil palm and is being used for parking during major events.
The company is planning a mixed development comprising residential units, commercial properties, a hotel and convention centre with a potential gross development cost of RM3.5 billion.
“For now we are in talks with five developers. But we are at the exploratory stage and no firm commitment has been made.”
He declined to reveal further details on the developers but hinted that they were “among the top 10 developers” with good track records and credibility.
The integrated development, which will also feature educational centres as well as amusement and commercial parks, is expected to be completed in phases over the next 10 years.
“We are looking at transforming it into an integrated edutaiment centre,” Razlan said.
On the hotel development, Razlan said SIC was looking to have a four-star hotel with 200 to 250 rooms.
He said the company had held preliminary talks with hotel operator Accor Hotels Group to operate and manage the hotel.
“They are excited and very keen. In fact, they have given us a draft agreement already. Le Meridien under the Starwood Hotel Group has also expressed its interest in operating and managing the hotel,” he added.
The top developers in Malaysia include Eco World Development Group Bhd, IJM Land Bhd, IOI Properties Group Bhd, Mah Sing Group Bhd, Perbadanan Kemajuan Negeri Selangor, Sime Darby Property Bhd, SP Setia Bhd, Sunway Bhd, Tropicana Corporation Bhd and United Malayan Land Bhd.