KUALA LUMPUR Dec 4 Singapore's Fastrack Autosports Pte Ltd and Malaysia's UEM Land Bhd have agreed to jointly develop an integrated motorsports hub in a big industrial zone in southern Malaysia.
The joint venture marks growing interest from Singaporean firms in the zone named Iskandar after Singapore and Malaysia signed a broad agreement in 2010. Iskandar is in the Malaysian state of Johor, north of Singapore.
UEM Land did not specify the cost of the venture, although Singapore media have reported the figure at S$1.26 billion (3.15 billion ringgit).
Both companies will subscribe to a special purpose company called Crimson Carnival Sdn Bhd, with UEM taking a 30 percent stake and Fastrack the balance. Crimson will buy 109 hectares of land from UEM for 223.46 million ringgit, according to a stock exchange filing on Tuesday.
The proposed development is intended to be a motorsport city which includes showrooms, automotive retail, workshop, a test track and go-kart track, according to UEM.
Billionaire Peter Lim, who failed in his bid to buy English Premier League club Liverpool in 2010, will hold a 70 percent stake of the facility through his Fastrack Autosport firm, Singapore daily Today said. The newspaper did not say whether the circuit would be able to host Formula One races.
Malaysia currently hosts an F1 race at the Sepang Circuit near Kuala Lumpur airport but while the track has proved popular with drivers, there have long been calls for upgrading the surrounding facilities. (Reporting by Yantoultra Ngui; Editing by Richard Borsuk)