INVESTMENT OPPORTUNITY IN DEVELOPING A HEAVY INDUSTRY PARK IN BAGAN DATUK, PERAK, MALAYSIA

Posted On: 16 / May / 2023
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Deal Details

Annual

Deal Type

Equity (Fundraise)
Maximum Loan

Industry

Commercial Real Estate
Charge

Deal Status

Active

Deal Description

We wish to invite you to invest in Desa Pauh Sdn Bhd in the above stated 
project through your participation via equities and preference shares 
details as follows.
1. The Project
To design, develop, operate, and own or sell for profit 3,400 acres (1,376 
hectares) of land through land reclamation, for the development of a 
heavy industrial park which includes a deep-water seaport, along with 
fundamental infrastructure is known as Perak Heavy Industry Park (PHIP). 
The location of this project is in the district of Bagan Datuk, Perak, 
Malaysia and is situated by the Straits of Malacca.
2. The Investment
A possible total investment of up to USD 3 to 4 billion for the entire 
completion of the Project that may take between 10 to 15 years. Total 
investments for the entire Project will only be determined during the First 
Phase of a two-phase investment structure.
The first phase will start off with the acquisition of the project, developing 
a strategic Masterplan which includes technical plans for land reclamation 
and infrastructure, and creation the industrial park with full offerings for 
off-takers to invest into the park. The first phase will require an initial 
investment of USD60 million and can be completed within two to three 
years.
The second phase plans will be formulated during the first phase for which 
the Masterplan, financial analysis, offerings of the park and 
implementation schedule will be finalized.
Should you decide to invest in this project, it will initially be for the first 
phase and you will have the option of the first rights of refusal to continue 
into the second phase or exit at the end of the first phase. The details of 
the investment structure are explained in the Proposal Paper attached.
3. Investment tenure
The period of investment for the first phase is between two to three years 
whilst period of investment for second phase can only be determined 
during the operations of the first phase.


4. Exit Strategy and Projected Profits
If you wish to exit from the investment at the end of the first phase, the 
strategy is to sell the concession company at the end of the investment 
period (2 to 3 years). The projected profits derived from the values created 
will be between 90% to 180%.
At your option, you may decide to continue with the second phase for 
which the investment will continue with the physical development of the 
park and the investment period and projected returns can only be 
formulated during the first phase. 
We trust the above brief notes and together with the details as in attached 
papers would interest you to invest in this project. 
Malaysia is currently positioning itself to be a great investment destination 
and this project itself has many great offerings for international demands. 
To top it all, the location of this project is in the parliamentary constituency 
of the Deputy Prime Minister whom has promised to provide all support 
required for its success.
Your favourable considerations are greatly appreciated and looking forward 
to having you on the Project. Thanking you in anticipation.

No Files Attached

Deal Value
479.4 Crore
Targeted Region
Asia Pacific

Revenue

2019-20
Undisclosed
2020-21
Undisclosed
2021-22
Undisclosed