FOR TOWNSHIP DEVELOPMENT PROJECT

Client

GP21

Products & Services

• Due Diligence
• Fund Raising

Description of Project

Client

GP21 was a Korean Investor group that wanted to acquire a stake in Desaru Development Corp Sdn Bhd (DDC).

Background

Desaru Development Corp Sdn Bhd owns 1,618ha of land for development in Johor Malaysia. In the pipeline for the development is the building of two international class hotels to be managed by two of the world’s renowned hotel management companies and a world-class golf course. 

There will also be a theme park incorporating tropical, eco-adventure and water features and a convention centre to cater to the meeting, incentive, convention and exhibition segment.

Challenges & Expectations

The client would like to appoint an independent consultant to assist in the deal facilitation.

Our Role on the Project

Scope of Services

We were being appointed to carry out a due diligence exercise that includes financial review, tax review, business review, high level risk analysis and other matters that the client was looking at pursuant to due diligence information provided.

Solutions / Outcomes Delivered

We started with a comprehensive review on the development plan, including the development components and project finance. The outcome is a detailed assessment report that highlighted the possible project risk areas and a series of mitigation strategies that could be adopted by the client.

This follow by a stakeholder engagement session to work out the possible investment structures under different shareholding and valuation scenarios.

We also assisted in the deal negotiation and oversee the drafting of binding term sheet, in particular the financial related components.