VCI Global engaged as consultant for RM600 million (approximately USD130 million) mixed development project in Melaka, Malaysia

KUALA LUMPUR, Malaysia, June 01, 2023 (GLOBE NEWSWIRE) -- VCI Global Limited (NASDAQ: VCIG) (“VCI Global”, or the “Company”) today announced that its wholly owned subsidiary, V Capital Real Estate Sdn Bhd (“V Capital Real Estate”) has been engaged as a consultant by Tinta Anggun Engineering Sdn Bhd (“Tinta Anggun”). This is with respect to the latter’s mixed development project known as Porto De Melaka, comprising residential and commercial units on a 9.91-acre commercial land in Melaka. The land, located next to the Melaka river mouth, fronting the sea, is about 600 metres from the famous Jonker Walk within the UNESCO Heritage Site of Melaka. Melaka, located approximately 2 hours driving distance from the capital of Malaysia, Kuala Lumpur, attracts an average of 18 million tourist arrivals to the UNESCO Heritage Site of Melaka. The site also boasts a waterfront resort living style and located next to the upcoming Melaka International Yacht Club.

V Capital Real Estate’s scope of consultancy works includes, amongst others, the successful development and execution of the development strategies for Tinta Anggun, advise on the development of capital structures of equity and debt and advise in financial analysis and project evaluation.

The entire Porto De Melaka project, with a RM600 million (approximately USD130 million) gross development value (“GDV”), comprises one 241-room hotel, 1 block of serviced suite of 140 studio units and another 4 blocks of serviced apartments comprising 342 units. V Capital Real Estate’s consultancy works will focus on 3 of the 4 serviced apartments and the 241-room hotel, with a cumulative GDV of RM400 million (approximately USD87 million). The consultancy fee in turn shall be 20% of any revenue generated from this portion of the development during the 5-year term of the consultancy.

Tinta Anggun believes there is currently significant demand for residential development in Melaka and expects occupancy rates to be high given the location of this development which is in the main population centre of the Melaka state. Demand would be well supported by the state of Melaka’s mean monthly household gross income of RM7,186 (approximately USD1,560) in 2020, based on data by Department of Statistics Malaysia, which is higher than Malaysia’s overall mean monthly household gross income of RM7,089 (approximately USD1,540).