KUALA LUMPUR, April 30 (Reuters) - Malaysian developer Berjaya Land Bhd (BLAD.KL) has expanded the scope of its joint-venture project to build a new town in South Korea, raising the total estimated development cost to about $2.6 billion.
Berjaya Land first announced last October that it had entered a joint venture with Jeju Free International City Development Center (JDC) to become master developer for the project in Jeju province, at an original estimated cost of about $500 million.
But Berjaya Land said in a statement to the Malaysian stock exchange on Tuesday night that the project was now estimated to cost more than five times that, at around $2.6 billion.
The “Yerae” resort-type town would be built within 8-10 years over 74.37 hectares and include 600 mid-rise apartments, 200 villas, a 500-room hotel, a casino with 500 rooms, a shopping complex, and a medical centre, it said in the statement.
Jeju is a special self-governing province that offers tax breaks for investors. The South Korean government wants to turn it into a tourism hub, according to the Web site of Invest Korea, the country’s investment promotion agency.
Reporting by Mark Bendeich, Editing by Jacqueline Wong