After years of conceptualising and planning its massive ICT-based development in
Selangor’s capital of Shah Alam, mainboard listed I-Bhd is finally beginning to
see its work pay dividends.
Early this week, the company reached a pact with Saudi Arabia’s Al Rajhi Bank, the
largest Islamic banking group in the world, for the sale of 80 per cent of commercial
space in the first phase of its 72-acre i-City development for RM95 million.
The deal works out to a value of RM457psf based on the 208,000sq ft of nett usable
space contained in the phase called Cybercentre 1 Office Suites.
In explaining the bank’s decision for the acquisition, Al Rajhi chief executive
officer Ahmed Rehman said "i-City is our first foray into real estate investments
in Malaysia (as the purchase) was made in line with the government’s effort to promote
MSC status developments".
i-City was awarded MSCCybercentre status by the government in May, which allows
MSC-qualified businesses that set up offices in it to enjoy a raft of benefits under
a Bill of Guarantees.
I-Bhd’s executive director Eu Hong Chew said the balance of 20 per cent of space
will be retained by I-Bhd as a source of recurring rental income and "to comply
with MSC Malaysia’s requirements".
"Al Rajhi is transforming itself into a banking technology fulfillment partner,"
said Ahmed, adding that besides its MSC status, what clinched the deal was i-City's
investment in a raft of ICT infrastructure.
The first phase of i-City comprises a total of 44 units of three- and five-storey
Cybercentre Office Suites that have been completed with Certificates of Fitness
and are supported by features such as high-speed fibre optic connectivity, Cisco-based
networking systems, CCTV surveillance, 100 per cent standby power supply and redundant
broadband.
"We are very happy i-City can cater to all of Al Rajhi’s needs and are confident
we can build on our strategic relationship," said Eu.
He pointed out that the signing is only the first milestone of the development and
that the MSC Cybercentre status will allow i-City’s properties to command a premium
over the other "conventional" commercial premises in the locality.
"The price (of RM457psf) is the new benchmark for Shah Alam township," said Eu.
In another move to accelerate the township’s ICT infrastructure development, I-Bhd
also signed this week an agreement with Kompakar Inc Bhd to provide data centres
that will form an integral component of i-City.
In its first phase,
there will be three: A 3,500sq ft tier-one data centre catering
to local small and medium enterprises and a pair of 70,000sq ft tier-four data centres
for global ICT companies.
Under the alliance, Kompakar, which is one of i-City’s anchor tenants, will be responsible
for the investment in the data centres’ equipment and facilities.
With them, Eu said i- City’s tenants can look forward to enjoying lower operational
costs and free up space in their individual offices that would usually be allotted
to storing servers.
When the RM2 billion i-City is fully completed by 2015, it will feature the smart
Shopping Gallery cum Mall, an innovation centre, corporate office towers, a serviced
apartment and hotels.