IslamicFinance.de

UDA Holdings Bhd has signed financing agreements with financial institutions for a syndicated Islamic financing facility of up to RM500mil to finance its eight projects with an estimated gross development value (GDV) of RM1.62bil. The financiers are Affin Islamic Bank Bhd, AmBank Islamic Bhd, RHB Islamic Bank Bhd, Bank Pembangunan Malaysia Bhd and Kuwait Finance House (M) Bhd. UDA managing director Datuk Ahmad Abu Bakar said the finance facility would be use to partly fund the construction of the projects nationwide and the rest would be funded by sales. The eight projects comprise commercial and residential developments.

UDA Holdings will work with Bank Muamalat to develop 40.47ha of wakaf land with a gross development value of RM1 billion. The land, ready for development, is spread throughout the country and owned by the respective state Islamic Religious Councils. Bank Muamalat will provide the end financing for UDA to develop the land. The implementation of development projects on the wakaf land will be based on the concept of Ijarah or leasing. To realise the development of wakaf land, UDA acting as the developer, will underwrite the development costs, while also being responsible for marketing the projects.