LP04 - PA Project Financing and Funding

IOI CITY MALL PHASE 2
PUTRAJAYA
ABSTRACT
IOI CITY MALL, PUTRAJAYA– Biggest integrated
family lifestyle and entertainment megamall at
Southern Klang Valley
IOI CITY MALL: PHASE 2 PURTAJAYA – Sustaining
of sustainability to its region and surrounding by
providing integrated resort life style with leisure,
sports and entertainment points that’s away from
city crowd and living. PHASE 2 is legacy demand
from PHASE 1 upon 98% of occupancies by various
known international branding.
ASSESSING OFFICER:
ASSOCIATE PROF DR ROSLI NEKMAT
LP04 – PROJECT FINANCING & FUNDING

PERFORMANCE ASSESSMENT
HARDCOPY FOR FORMALITIY PA-Z-004-LP04
SOFTCOPY HAS BEEN SUBMITTED DATE: FEBRUARY 2021
DATED 3/4/21 - EMAILED NAME : SIEW UO YONG
Project Financing & Funding (PA-LP04)
CONTENT Page
1.0 Performance Assessment 3
2.0 Clarification 10
3.0 Project Information 11
4.0 Introduction 15
5.0 Project Requirement Statement Reviewed 17
6.0 Feasibility Report Analysed 20
7.0 Cost Elements Established 33
8.0 Design Parameters Determined 34
9.0 Costs Estimated 37
10.0 Budget Formulated 38
11.0 Project Funding Requirement Identified 40
12.0 Project Funding Structure And Sources Identified 43
13.0 Merit Of Funding Sources Evaluated 46
14.0 Funding Acquisition Support Documents Prepared 51
15.0 Alternative Solutions To Convince Financiers Provided 55
16.0 Funding Secured For Client 57
Appendix A
© CIDB 2010 (Original CIDB 2005)

PA-LP07 (Design Management) Page 2 of 58
PROJECT FINANCING AND FUNDING
Performance Assessment
PA-Z-004-LP04

Trainee Name: SIEW UO YONG

I/C No.: 730219 – 13 - 5757
Date: 5 FEBRUARY 2021
PERFORMANCE ASSESSMENT
Skill Task No. Task Coverage

02.04 Establish project budget
Z-004-LP04
02.05 Procure project funding
ATTENTION:
This Performance Assessment is to assess your performance on tasks 02.04 and

02.05 and that these tasks comply with competencies requirement as stated inside
National Competency Standard (NCS) for Construction Project Management. You are
required to perform task given as evidence of competency.
TERMINAL PERFORMANCE OBJECTIVE (TPO):
Procure project funding USING conceptual design drawings, terms of reference,

specifications and performance criteria, project brief, procurement requirement
statement, life-cycle costing, sources of finance, scheduling software, financial
modeling software, risk management model, feasibility report, cost plan, cost pricing
database and decision analysis model and software, SO THAT feasibility report
analysed, cost elements established, design parameters determined, cost estimated,
budget formulated, project funding requirements, structure and source identified,
funding acquisition support document prepared and funding secured.
DIRECTION TO THE TRAINEE:
Before beginning the performance assessment, carefully review the checklist.

When you feel you are ready, contact your resource person. You must complete all
steps satisfactorily.
DIRECTION TO THE RESOURCE PERSON:
The trainee will contact you when he is ready to complete the performance
assessment. The trainee must complete all steps satisfactorily before continuing with
additional learning activities. If all steps are not completed satisfactorily, review the
checklist with the trainee, pointing out areas requiring further study. Assist, as required
to ensure the trainee understands the performance assessment requirement and will
contact you when he is ready to repeat the performance assessment.
ASSESSMENT CRITERIA:
Your performance will be assessed accordingly to the assessment criteria below:
1. Review the Project Requirement Statement (PRS)
2. Analyse project feasibility report
3. Establish cost elements
4. Determine design parameters
5. Estimate costs
6. Formulate budget
7. Identify project funding requirement
8. Identify project funding structure and sources
9. Evaluate the merit of funding sources vis-à-vis funding needs
10. Prepare funding acquisition support documents
11. Provide alternative solutions to convince financiers
12. Assist client in securing fund

TOOLS AND EQUIPMENT:
 Conceptual design drawings

 Terms of reference
 Specifications and performance criteria
 Project brief
 Project requirement statement
 Life cycle costing
 Sources of finance
 Scheduling softwares
 Financial modelling softwares
 Risk management model

 Feasibility report
 Cost plan
 Cost pricing database
 Decision analysis model

PERFORMANCE ASSESSMENT SHEET

Assess the assignment for competency in each of the following areas and tick () in
appropriate column given. The assignment can be reworked with the permission of
Assessing Officer.
First attempt Second

No. Competency items assessed’ attempt
C NYC C NYC
1 Project requirement statement reviewed
2 Feasibility report analysed
3 Cost elements established
4 Design parameters determined
5 Costs estimated
6 Budget formulated
7 Project funding requirement identified
Project funding structure and sources
8
idenfied
9 Merit of funding sources evaluated
Funding acquisition support documents
10
prepared
Alternative solutions to convince financiers
11
provided
12 Funding secured for client
Legend:
NYC= Not Yet Competent
C=Competent

Verification Result: Not Competent First attempt Second attempt

Competent First attempt Second attempt
ASSESSOR REMARKS
Date:
Name and Signature of Assessor: CIDB Stamp:

MPPM - LP04 Project Financing and Funding
PAZ-004-LP04 - Performance Assessment
SIEW UO YONG
CLARIFICATION OF CASE STUDY

In relation to the case study from the LP04 – Project Financing and
Funding and its continuity of Case Study implied to the MPPM program,
hereby the project of IOI City Mall Phase 2 expansion will be applied to
this Performance Assessment.
In relation to the corporate policy, the writer will have to regenerating all
relevant information from the corporate for the purposed on assessment.
While ensuring the continuity of the same project in the whole program of
MPPM, hence the present Owner IOI City Mall Sdn. Bhd. (Wholly owned
by IOI Property Group Berhad and Main Contractor Messrs. China
Construction Third Engineering (M) Sdn. Bhd, will be used as case study
for its purposed.
As such, in relation to the performance assessment objective and the

scale of project, there will only be part of the element to be implied in this
case study.
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A PROJECT INFORMATION
i Project Name: PERMOHONAN KEBENARAN MERANCANG PENDIRIAN BANGUNAN BAGI
CADANGAN PEMBANGUNAN PERNIAGAAN SECARA BERFASA YANG
MELIBATKAN :-
A. FASA 1
1) 2 BLOK MENARA PEJABAT 31TINGKAT (SEDIAADA)
2) SEBUAH KOMPLEKS PERNIAGAAN 4 TINGKAT (SEDIAADA)
3) SEBUAH HOTEL 23 TINGKAT MENGANDUNGI 350 BILIK (SEDIAADA)
4) 3 BASEMENT DAN SUB-BASEMENT TEMPAT LETAK KERETA (SEDIAADA)
5) SEBUAH HOTEL 23 TINGKAT MENGANDUNGI 621 BILIK (TAMBAHAN
B. FASA 2
1) SEBUAH KOMPLEKS PERNIAGAAN 4 TINGKAT (TAMBAHAN)
2) 1 BLOK MENARA PEJABAT 42 TINGKAT (TAMBAHAN)
3) 3 BASEMEN DAN SEUB-BASEMEN TEMPAT LETAK KERETA (TAMBAHAN)
DI ATAS PT 83 DAN PT 50430, IOI RESORT CITY, MUKIM DENGKIL, DAERAH
SEPANG, SELANGOR DARUL EHSAN UNTUK TETUAN: IOI CITY MALL SDN. BHD
ii Estimated Value TOTAL : 2,000.00 Million ( 2.0 Billion )

of Project 1) Basement and Commercial Complex – 1,200.00 Million (1.00 Billion)
2) Tower Blocks – 800.0 Million ( 0.80 Billion )
iii Targeted Starting 1) Basement and Commercial Complex – 1,200.00 Million (1.00 Billion)
Date: 2) Tower Blocks (MOXY Hotel )
Started – June 2017 End – May 2022
vi Client: IOI Properties Group Berhad @ IOI City Mall S/B

Employer Mayang Development Sdn Bhd ( Fully owned by IOI Properties Group Berhad )
1) DESIGN ARCHITECTS
Consultant:
 RTKL INTERNALTIONAL LTD
2) ARCHITECTS
 PI ARCHITECT
3) CIVIL & STRUCTURE ENGINEERS
 ASIA PACIFIC ENGINEERING CONSULTANT SDN BHD
4) MECHANICAL & ELECTRICAL ENGINEERS
 LI-ZAINAL SDN BHD
5) QUANTITY SURVEYORS
 BAHARUDDIN ALI & LOW SDN BHD
vi Contractors BASEMENT AND COMPLEX

Earthworks: Landhon Construction Sdn Bhd
Foundation: Geohan Sdn Bhd
Substructure : China Construction Third Engineering (M) Sdn Bhd
Superstructure : China Construction Third Engineering (M) Sdn Bhd
TOWER 1 (MOXY HOTEL)

Superstructure : China Construction Third Engineering (M) Sdn Bhd
vii Project Manager IOI Properties Sdn Bhd @ PM LINK LTD
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PROJECT INFORMATION
Project Location:
Project Site Location:
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Project Phases : Phase 2 Development Boundary
Project Phases: Phase 2 Development Boundary
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Project Phases: Phase View
Project Layout:
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Introduction:
Project finance is the funding (financing) of long-term infrastructure, industrial projects,
and public services using a non-recourse or limited recourse financial structure.
The debt and equity used to finance the project are paid back from the cash flow
generated by the project.
Project financing is a loan structure that relies primarily on the project's cash flow for
repayment, with the project's assets, rights, and interests held as secondary collateral.
Project finance is especially attractive to the private sector because companies can
fund major projects off-balance sheet.
As Project Managers (PM) in implementation and complete the project cycle from the
initiation to close up stage and further to operation in project, it is essential for project
manager to make in available of their knowledge of the funding options towards the
project and the purpose for which it was intended will broaden the PM’s view so that
they are able to have an overview of the whole project environment in which they
manage.
Funding shall be one of the basic requirements in every businesses including the
construction industry as it is needed to start a project, a business or even to continue
to run one. Therefore, project funding is imperative to ensure there are sufficient funds
for the daily running of the business, short-term needs or long-term need. The amount
and financing facilities required depends on the scale and type of business. In Building
and construction project financing requirements are usually very substantial in
amounts and thus often needs external funding or financing. For example, developer
will have they development needs in funding which are partly financed by payment
under the Sales and Purchase agreement. Meanwhile, Contractor will require they
funding in project which partly financed by client’s progress payment for work in
progress completed/certified and another part from credit facilities offered by the
material suppliers.
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With all the relevant funding objective to the either developer or contractor, needs of
the funding will be core element to their business cycle within their fixed capital,
working capital and growth capital in sustainable various stages of their development
and construction business environment. In conclusion, project funding is usually
required in stages, more being required early in the project cycle. Therefore, financing
and funding of a project need to be carefully planned, time phased and monitored
throughout the project to ensure funds are available as required.
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PROJECT REQUIREMENT STATEMENT REVIEWED
Project requirement statement, an initial tools of the project team to interpretation of

the client needs and requirement to the final project objectives and goals. Hence,
project team as include the Project Manager (PM) shall herewith in ensuring the
achieving toward the client’s project goals and objectives in realisation of a project.
In OI City Mall Phase 2, the following are the development requirements and needs
from client’s in as project requirement in development management plan which can be
summarised as following table:-
Item Project Requirement Brief and Needs Statement
1 IOI CITY MALL (A PART TO IOI RESORT CITY )

GROUP DESIGN NEEDS AND BRIEF
a) Cultivating sustainable development,
b) Create enduring value and invigorating lifestyle experiences for our customers
and stakeholders
c) Properties are designated to catalyse opportunities for interaction, nurturing and
enabling people, communities and businesses to grow.
d) Developing Sustainable Living Environment - Sustainable living environment by
witnessing through implementation of plans and designs that minimize pollution
and usage of resources be it energy, water or material
e) Optimising Use of Material - The use building system promotes material
efficiency, decreases wastage and defects and increases work quality
f) Exceeding Expectations - Promotes continual improvement that is necessary to
uphold Group's reputation as committed and responsible developer
g) Developing Thriving Communities - Forming vibrant and thriving communities
through provision of communal spaces that encourages recreational and social
activities as well as habitats for urban biodiversity.
GROUP’S DEVELOPMENT REQUIREMENT

h) STAY, WORK AND PLAY - Envisioned to be and fast transforming into the
lifestyle magnet for stay, work and play in one address.
i) BUILDING ON A WORLD-CLASS VISION - Become a world-class destination
with avant-garde architecture, more components are being added which are fast
taking shape
j) RESORT LIVING, CITY CONVENIENCES – Advantages of being located in a
central location and surrounded by established amenities and conveniences with
one of the best highway networks in the Klang Valley
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With the lesson learn and experience gained from the development of IOI Mall,
Puchong and IOI City Mall Phase 1, Putrajaya. The Phase 2 of IOI City Mall will be the
improved version of both malls in terms of value and substantiality in the development
management process identification parallel to the Group’s requirement and needs.
Following are the project brief and needs of IOI City Mall Phase 2.
Item Design Requirement Brief and Needs Statement
2 IOI CITY MALL PHASE 2, PUTRAJAYA

MALL REQUIREMENT AND NEEDS STATEMENT SUMMARY
a) A modern eco city mall, focusing on ecological management of its natural

resources and diverse development that integrate into sustainable future
b) Inspired lifestyle with world-class shopping, entertainment, business,

commerce, recreation and accommodation with surrounded by magnificent
greenery that forms into a self-sustaining green community.
c) Maintaining of natural “leaf” concept with its overall design from the Phase 1, as
theme to resemble the “bud” of a flower, becoming a place where more
experiences
d) The exterior and interior architecture of the mall and the towers require have a
new and refreshing look and feel, same time complementing the previous phase
by using similar material, colours, plants and finishes.
e) Require an indoor shopping mall, a canopy-covered outdoor street retail

promenade, a business hotel, an all-suite hotel and 3 office towers
f) Maintaining central glass atrium of bringing light and energy into the space for
allowing visitors to experience the bright skies and abundance of nature
g) Increment of new edutainment centre, sport centre add to the mall’s existing
Olympic-sized skating rink, cinema and full range of entertainment options
h) Conveniently arterial from the freeway as well as connected by arterial Ring

Road Network
i) Retail zoning strategy to secure content visitor flow.
j) Elevators require designed in the manner of juxtaposition at every end to

circulate the shopping crowd from floor to floor, ensuring each retail business
owner the maximum exposure to engage potential consumers and crowd.
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MALL DEVELOPMENT REQUIREMENT SHALL CONSISTS OF:

2A
a) Total of 1.0 Million net lettable area
b) Increment of 300 retail outlets
c) Exhibition Hall of 40,000.00 Sqft
d) Entertainment centre for families
e) Brand new cinema concepts with IMAX hall
f) Sport centre & gym
g) Alfresco dining arcade with Porte Cochere frop off zone
h) Increment of E-Hailing operating points
i) Consumer’s ease transportation and chatter services system
j) 9,000 car parking bays with available parking at every shopping level which will
lead to the total of 16,000 carpark available.
k) “Car Finder” system for the sense of security
l) Hassle-free experience in locating customers parked vehicles
m) Planned of 500 security cameras of CCTV surveillance
n) Additional 150 IOI Auxiliary police officers (fully owned by IOI) to serve the mall
with 24 hours 7 days round the clock patrol system.
o) Increment of 12 ingress and egress points bringing all visitors and customer to
the doorstep of Mall
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FEASIBILITY REPORT ANALYSED
Feasibility report of development project consists of initial preliminary assessment

needs undertake to gauge the feasibility of the development proposal for review and
analysed the overall development status in term of risks, market, financial and
economic to technical aspect before further detail work is being carried out. This shall
able to have the initial objectives that if shall the owner goals and objectives can be
executed and implemented to achieve the end “product”. By carry out the feasibility
analysis, developer able to scale down the resources for not being wasted in detail
development plans and carry out the work on something that has no hope of moving
forward due to one or a combination of factors that appear not feasible from the outset.
Feasibility study report provided the information of preliminary assessment/proposal

to determine whether a project is viable or feasible from both the business, technical
and social points of view. It provides the client with an appraisal and recommendation,
in order that he may determine the form in which the project is to proceed, ensuring
that it is feasible, functionally, technically and financially before a piece of land is
officially acquired for type of development to achieve the project owner goals and
objective. In order to ensure the feasibility study is comprehensive so that the client
can decide on the subsequent procurement of the project, relevant investigations must
be carried out as follows. The study shall consists but not limited to the following:-
a) Identifying and assessing the suitability of site
b) The economic and market analysis
c) Recommended development mix - that may include the type of facility likely
to be suitable, its potential demand and likely competition, interest rates,
capital injection, user fees and/or selling price
d) Estimates of the time needed for the project and likely range of cost
e) Authorities policies in relation to the proposed development
f) Environmental Assessment report
In common, feasibility analysis shall consist of Product Feasibility, Market Feasibility,

Organisation Feasibility and Financial Feasibility in justification of deliverable of
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development project goals and objectives of the particular project can be briefed as
below:-
PRODUCT FEASIBILITY
The product of development shall hereby fit for purposed of project owner operation
objectives. In this case of the IOI development, the end product shall able to represent
the following:-
1) Trendsetting retail powerhouse

Development shall able in capturing larger amount of patronage every season
throughout the year in built up confidence among retail business owners to
engage with the project and together these tenants made up an array of
fashionable selections for patrons to choose.
2) Redefining shopping experiences by features with major ideal design

Achievement of flexible and unique retail zoning strategy to secure content
visitor flow. Indirectly, that also helps our retail tenants to sustain a heathy pools
of patronage regardless of the shop location.
3) Exceptional alfresco dinning indulgence

Attraction and achievement in rich variety of world class cuisine in lush greenery
to set in as new caption of the mall. The new expansion of the mall focuses on
an affluent dining experience encapsulated by outdoor landscape, surrounded
by open air tranquillity and with more international gourmet brands joining us,
be ours guests to enjoy the best food in town upon completion of the Phase 2
Mall.
4) Public call points and e-hailing

Availability and trend in public E-hailing of consideration of popularity in public
e-hailing operating points for consumer’s ease transportation system other than
conventional station available at specific station and the locality bus chatter
services range from Putrajaya and Cyberjaya for shoppers and visitor
convenience.
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5) Award and recognition

Continuing in Local and International awards which brought its name to
International stage and known for one of the highest occupancy rate among the
Klang Valley. This has built up and strengthen with a reputable crowd magnet
that attract both consumer patronage and business associates to setup regional
flagship stores.
6) Dynamics demand
High growth demand of lease shown to the existing office blocks, increment and
maximising of the future coming Tower block 3, 4 and 5 planned to completed
by year 2025 will be filled the demand of businesses spaces. To the Mall lettable
area of 1.0 Million Sq. Ft. in space, various tenants has been listed for the least
and anchor tenants such as Aeon, Parkson, IMAX in queue for the completion
of Mall Phase 2 by Year 2021.In Order to enhance the attraction to the mall, the
increment of the facilities will be introduce for the performance of the mall as
follow:-
a) An exhibition hall of 40,000.00 Sq.Ft.

b) IMAX hall by GSC of 13-screen plus
c) Alfresco dining arcade with Porte Cochere Drop off zone
d) Additional 9,000.00 car parking with available parking at every shopping level
e) New edutainment and entertainment centres for kids and adults
f) New sport centre and gym
7) Security and guards

Increment and Enhancement of the mall safety of the mall’s visitors, workers as
well as the retail staff, additional safety measure added as follow:-
a) Introduce of “Car Finder” system for the sense of security and hassle-free experience in
locating customers parked vehicles
b) Planned of 500 security cameras of CCTV surveillance
c) Additional 150 IOI Auxiliary police officers (fully owned by IOI ) to serve the mall.
d) Continuous of existing safe guard personnel with 24 hours 7 days round the clock patrol
system.
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8) External connecting and infrastructure
Traffic planning and flow parallel in consideration of the future crowd and
expansion to the mall, the projects mandate is given to project teams to
investigate in detail of the surrounding traffic for the entire mall development in
increment of ingress and egress to Mall, door step parking and ensuring a
convenient shopping experience of connecting all highways around the IOI
Resort City that have been thoughtfully planned and dedicated of purposed-
built surrounding the entire mall. Car parking bay available for the combination
of both phases upon completion and shortest awaiting time of parking in this
region parallel group sustainable goals in development.
MARKET FEASIBILITY
Market analysis in surrounding of consumer behaviour and trend, the competitor and
lease in market competition shall be the main core of the marketability for development
product. Elements in this particular development has included the following:-
1) Population and Shopper Growth

Analysed of surrounding of population of more than 3.5 Million residential,
industrial, business and commercial within 15.0 KM radius surrounding of
Cyberjaya, Sepang, Puchong, Bandar Baru Bangi, Kajang, Seri Kembangan,
Serdang, Dengkil and Cheras and the growth of this region recorded of 2-3%
growth annually of population that has impacted the demand of the both
residential and commercial since year 2015 and this has been showing from
the group sales chart on the residential development and market review on the
southern region area such as Puchong South, Cyberjaya, Dengkil, Cheras and
Kajang.
To date, IOI City Mall Phase 1 has attracted average 1.0 Million Visitors to the
mall weekly with its precious of 1.50 Million Four (4) storey Shopping Mall and
surrounding by Residential Condominiums, Resorts and Hotels, Golf Club and
Office Towers as Mall’s neighbourhood
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As statistical recorded by
Malaysia Statistics
Department 2010 shown,
the consuming power of
Malaysian Shopper is
increasingly robust, showing
a fond of lifestyle shopping, complemented by a wide variety of brand choices,
retail shopping is still favourable among Malaysians proven with progress sales
number in track record as chart shown below for reference the current market
trench which has been proven with the expanded demand of saturated more
than 98% occupancies.
2) Location
At the heart of the 788 acre township of IOI resort city, IOI city mall served by
one of the best highway network in the Klang Valley of connecting by SKVE
Highway, LDP highway, MEX Highway, SILK Highway, North-South Highway
and Besraya Highway well connected to major city of Putrajaya, Cyberjaya,
Puchong and Kuala Lumpur City Centre. Other than strong and dynamic
potential growth taking place of surrounding residential communities, ioi city
mall is strategically with 4 shopping malls, 2 hospitals, 7 international schools,
3 chinese primary schools, 5 tertiary education institutions, 4 golf courses and
6 (four to five star) hotels and is poised to become the next benchmark
sustainable development and the most liveable place in Malaysia.
3) Amenities
At the southern region of Klang Valley, IOI CITY MALL is in the midst of the
leisure and resort with golf club and hotels nearby as located within 15.0 KM in
distance. The table below showing the IOI CITY MALL ( A MALL WITHIN THE
RESORT CITY ) and surrounding attractions, healthcare, communities, leisure,
education and living which have been well known for STAY, WORK AND PLAY
IN GOALS.
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Notable Place 16 Sierra Distance / KM

Putrajaya 8
Kajang 9
Seri Kembangan 10
CyberJaya 14
Puchong 18
Shopping Attractions Alamanda Putrajaya 8
Mines Shopping Fair 10
Aeon Shopping Centre 11
IOI Mall Puchong 20
Education Institutions Tanarata International Schools 5
Nexus Internaltional Schools 6
University Tenaga Nasional 6
University Putra Malaysia 7
Rafflesia Internaltional & Private Schools 8
SJK ( C ) Serdang Baru 2 9
LimKokWing University 11
Alice Smith 12
Australian International School Malaysia 12
Eaton International School 13
Multimedia University 15
ELC International Schools 15
Heriot-Watt University Malaysia 16
SJK( C ) Union 16
HealthCare Hopistal Serdang 1
Hospital Putrajaya 11
Columbia Asia 19
Leisure & Entertainment Palm Garden Golf Club within
Mines Resort & Golf 10
Saujana Impian Golf & Country Club 13
Kajang Hill Golf Club 14
Sources: www.ioiproperties.com.my
4) Lease Rate
Existing IOI CITY MALL is anchored by major brands such as the 13-screen
Golden Screen Cinemas, HomePro, Index Living Mall, Parkson departmental
store (second largest outlet), District 21 Adventure Park, Olympic-size Icescape
Ice Rink and the first conceptual “Food First” Tesco store in the country.
Other specialty retail offerings of the mall include its mini-anchors, namely
Borders, Brands Outlet, Food Junction, Harvey Norman, H&M, LOL, Molly
Fantasy, Kidzoona, Padini Concept Stone, Sports Direct.com, Toys R Us,
Uniqlo, Wangsa Bowl and YFS.
The mall houses a varied mix of fashion and accessories categories as well as
over 100 food and beverage (F&B) outlets. Some of the extraordinary F&B
outlets not to be missed are Magnum Putrajaya, T-Lounge by Dimah, Nathan’s
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Famous, Tony Roma’s, Dal.komm Coffee and Johnny Rockets’s. Also, there is
an al-fresco stretch of The Symphony Walk located on the ground floor, which
overlooks the golf course and lush greenery.
Aside from the good tenant mix, the success of IOI City Mall can also be
attributed to its unique entertainment components, which is a major “crowd
pulling” factor. For instance, the 70,000 sq ft Apocalypse-themed Adventure
Park – District 21, and the 30m by 60m ‘biggest ice rink in Malaysia’ – Icescape
Ice Rink, have successfully stirred interest in the Klang Valley as they appeal
to different age groups with their experiential offerings.
Comparatively, IOI CITY MALL offers lucrative lease rates at lowest in its region
from RM5 – 20 per Sq. Ft. as group’s goals of sustainable of sustainability to
entrepreneurs. The estimated growth rates for Q3 and Q4 2016 are 5% and
5.5%respectively. The overall retail market is getting increasingly competitive
and transforming at a fast pace.
RISK ANALYSIS
Analysis By Exercising Ansoff Growth Matrix

By strengthen the corporate goals and objectives towards the IOI Resort City via IOI
City Mall, IOI’s Management did practically exercising Ansoff Growth matrix that assist
businesses for deciding the market and product growth strategy. By analysis
application of matrix, management will ever to define is shall the extension
development of IOI City Mall shall within matrix category in order to enhance the
existing development product strategy.
In order to have overall reviewed in Phase 2, IOI’s management has defined the
following sectors based on the Ansoff Growth Matrix:
1) Market Penetration – With the Existing Products New Products
existing market attraction to the

Existing Markets
surrounding vicinity, existing IOI

Market Product
mall at Puchong which has been Penetration Development
well known to Klang Valley and

neighbour states in West
Malaysia located in one of the
New Markets
Market
highest population and business Development
Diversification
centre since last decades, IOI

City Mall has been well known in
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households at as one the biggest mall in southern region of Klang Valley.
Hence, continuity of Phase 2 will strength the crowds from various part of
West Malaysia household to the destination with comparative low pricing
with both retailer’s and hospitalisation at the Five Star facilities,
entertainment and living. The next market target will be the tourism and
external market where the existing world class hospitalisation facilities will
be attraction of foreigner resting spots in Selangor.
2) Market Development – For the development factor, IOI’s management still

maintaining the Mall as family first choice’s mall at its region where by the
following consideration are taken into market development factors:
a) Attraction spending time from a family to the mall from all range of the
age range.
b) Various attraction of entertainment, foods, leisure, sports and relaxing to
each particular consumer choices.
c) Increment of variety of choices to consumers by both international and
local retailing and others related choices.
3) Product Development – As move toward the Phase 2 Mall development,

the mall has expanded as landmark to the development sustainability :-
a) Increment of car parking bay of reducing the visitors waiting and

circulation time.
b) Retailer outlet orientation for all visitors reachable by further
improvement further the mall circulation routes.
c) New dine and food retailer environment of mall attraction.
d) Increment foot print of new and variety entertainment, family attraction
spot, sport centre, leisure to all ages.
4) Diversification – New branding of IOI city more from an ordinary shopping

mall to family stopping point. Management has strong and patient by
diversifying the mall to all time spend family mall where as Malaysian First
Choice Mall time spending. Move forward from here, the following has been
targeted as mall priority development.
a) For Senior - Rest and Relax any places intended.

b) For Shopper – Variety of shopping choices as individual affordability
c) For Teenage & Young – Indoor and Outdoor sports, foods, latest leisure
and entertainment visions.
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d) For Kids – Variety of kids and play range from the Phase 1 and
continuing new spots to Phase 2
e) For Food Lovers – Varieties of International cuisine.
f) For Holiday – Five Star facilities and hospitalisation with Four Star rates.
g) For Tourist – Well known existing hotels and resorts and new upcoming
international branding and services assurances.
h) For Businessmen – Golf and Resort, Business Centre, Exhibition and
Convention Hall within the Resort and Mall will be just in foot step.
Studying of Political, Economic, Socio-Culture and Technological Factors.

Further to the Ansoff Growth Matrix of analytical product of the organisation,
management proceed with the external opportunities and threats related to regional
political, economic, Socio-culture, technology, legal, competitive trend and events that
could be significantly benefit or harm in futures.
Focusing on analysis, management have particularly modelling the following section
as objectives in execution.
a) The Internal Environment – staff, office technology, wages and finance
b) The Micro Environment – External customer, agents, tenants, suppliers,
competitors.
c) The Macro Environment – Political force, Economic force, Socio-Culture force,
Technology force.
Political factors
 At the Macro-Level, Malaysian political environment is stable due to strong
political constitutions policies available in the country which has been governed
by a single political parties since 60 years. Although there are issues of
monetary scandals which has affects the Malaysian political constitutional
images lately.
 However, back to the current which Phase 2 is under construction at year 2020,
our political environment had a twice changes from the oppositions and
government, the process for sure will affect the voters’ perception of the
government.
 Moreover in this condition, our review of the current political environment,
changing of political parties will not much changes in macro level as both will
still executing the same with the objective of stronger political environment
status with maintaining the current economic policy in order to have better
Malaysia although there are differential in political philosophy in each political
parties.
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 At the Micro-Level, local authorities Majlis Perbandaran Sepang where project

located will still in same operation manner under the local authority requirement
even though there are changes in government resulting from the political parties.
 As property developer and business organisation, the development still
proceeds and continuing as corporate objectives as such action is encouraging
by any government bodies in term of economic growth.
Economic factors
 The Malaysia economy has shown its resilience for many years with strong
economic policies fundamental accommodative to the corporate world.
Government Debt Vs GDP of average range 50% to 55% range from year 2015
– 2019 is expected not significant burden the country economic standing which
has been achieving the growth of GDP average range from 4.5 % – 6.0 % from
year 2013 to 2019. The summary of growth chart can be shown as following
from Ministry of Finance and World Bank Statics.
 From the Bank Negara, Malaysia Debt Vs GDP ( Sources : Ministry Of Finance )
financial institutions
launching various kind of
financial package for
simulating the property
market will is beneficial to
surrounding especially
surrounding housing
development such as Clio
Residency, Conezion both
current and future housing
property development which is comparative low in this region of its kind.
 From EPF, the allowable of redrawn of EPF funding for properties purchasing
will be one of the convincing method in the increment of purchasing desire
locally.
 From the Global economy, China and US leading the pack in world economy
which China is one of the important market to Malaysia is allowable of owning
Malaysia property by various business schemes and housing owner such as
MM2H for permanent resident status will be benefit to the surrounding and Mall
in near future. Furthermore, IOI by itself has been involve in property
development in China (Xiamen District) since 5 years ago will be privileged
benefit from China foreign investment in both Resort and IOI Mall City.
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 By various strategy available local and internationally, management is believe

that the property selling price within the group will able to be sustain and
lucrative from the growth of corporate in near future.
 From overall consumer earning per capital in Malaysia, there are severe
increment of income per capital more than 10% since year 2015 as reported
which showing the strengthening of Malaysian in consuming strategy of
investment in property in long run individual financing standing. The Chart can
be shown as follow:-
 During preparing this Malaysia GDP Growth ( Sources : World Bank )

report, Malaysia and the
World is dampened by
pandemic COVID 19 which
has been shock the both
Malaysia and World
Economic badly. However,
Malaysia till to date, with
the effort from both
Malaysian and Health
Ministry in the effort of
various defend strategy
since the beginning of pandemic last February 2020, Malaysia is now under
current control and exit mode from this pandemic which is ahead of
neighbourhood and others part of the world. Hence, by this, management is
believe that our country economic will be in earlier recovery track comparatively
to others in the region.
Social factors
 IOI RESORT CITY and IOI CITY MALL is developed based on the sustainable
and modernisation of green living model at main objectives which suit for all
kinds of ages level from young to old and various races culture as nature in
Malaysia culture environment.
 The resort living and five star facilities in surrounding has strong growth over
the development phases showing that the now resort living has been create the
sustainable living environment rather than city living as norm in regional market.
Furthermore, Mall is the biggest attraction due to its concept suit to all various
level of consumer ages.
 Mall is developed with signature of culture to suit with the intend for all various
culture and custom in Malaysia, as known, all visitors from various customs and
culture able to reach their needs in the Mall which others Mall may not able to
achievable in this as Malaysian Culture.
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 Mall is equipped with advance and modernised security system such as

surveillance security CCTV, Parking lots identification system and Own House
Security Guard Team interior and external the Mall ensuring the awareness of
public security as priority in operation objective.
Technology factors
 As illustrated above, the mall upon completion of Phase 2, will be completed

with identification of parking lots of all visitors vehicle for conveniences of
public parking which will be first and ever parking identification system apply
in Malaysia’s Retail Mall. Same time, surveillance CCTV will be set in as
advanced monitoring system both internal and external till to each retail outlet
for the overall security provision.
 The Mall is designed with green technology with Green Index Building ( GBI )
and emphasising on natural lighting and ventilation that is reducing the use of
energy of Mall. Spacious foods and cuisine are design with outdoor in natural
cooling within green for the energy saving to retailer.
 Modern central waste management system with collection and disposal
system in order disposal to waste truck in require time.
ORGANISATION FEASIBILITY
As mature property organisation in this region, IOI having its mature and strong
management fundamental in organisation operation. All property development of IOI
property group is delegated under the property development range from the resort,
hotel commercial and residential development. The group organisation above is
showing the delegation of authority is in accordance with the organizational hierarchy.
IOI CITY MALL
Group Project Organisation Chart
DEVELOPMENT GROUP
GROUP CEO ORGANISATION CHART
LEE YEOW SENG
PROPERTY DEVELOPMENT
TEH CHIN GUAN
GROUP FINANCIAL GENERAL MANAGER GROUP

GENERAL MANAGER GROUP LEGAL
CONTROLLER PROJECT ADMISTRATOR
CONTRACT
WONG PPEN FOOK
CONTRACT & PROJECT

FINANCE DEPARTMENT COMMERCIAL TEAM MANAGEMENT TEAM
PROJECT TENANTS AND

CONSULTANT PANEL RETAILS
GROUP MARKETING
DIRECTOR IMPLEMENTATION
TEAM
INTERNAL
MARKETING TEAM
EXTERNAL
MARKETING TEAM
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The following table reflected the company’s authorisation policy and limits of key
executives and its line of delegation.
Designation Responsibility Answerable to Authority
Group CEO Overall group performance, direction, Board of Director Financing
planning and monitoring of property Procurement Decision
development Expansion
Lead of all Director
Property Overall property development performance Group CEO Fund Raising
Development CEO and future development Property performance
Procurement performance
Director, Finance Overall financial performance of property Property Financial Controlling and
development Development CEO Implementation, planning and
monitoring with financial
institution of fund raising
Director, Legal Power of financing sources, board Property Contracting formulation, raising
meeting, strategy and planning Development CEO fund and organisation retaining
earning utilisation
Director, Developing marketing strategy, planning Property Market study, promotion
Marketing and targeting Development CEO program and selection of
Marketing and promotion policy marketing expertise.
General Manager, Overall performance of property project Property Determination of procurement
Project and implementation Development CEO Determination of implementation
General Manager, Overall performance of project contracting Property Determination of contracting
Contract and procurement policy and quality Development CEO Determination of contract
performance
Director, Manpower needs and staff roles and Property Staff performance,
Administration and responsibility Development CEO Staff Discipline
Human Resources Administration Policy Recommendation and
Human resources development and policy remuneration of staffing
Labour Act implementation
FINANCIAL FEASIBILITY
Financial feasibility analysis studies shall be described as the time phased cash flow
projections. The developer sees the project development as a business activities and time
phased their business cash flow through the anticipated time frame when they expect to
completely leased out or sell off all their developed properties. The objective is to see if the
net cash flow when discounted by the expected rate of return will result in a zero or positive
Net Present Value (NPV). Positive in YES response means the project yields the required rate
of return on investment that can be obtain from the group’s finance and account department
which able to provide the report in the format required. However with Project Manager,
understanding of this subject matter is essential to provide meaningful contribution to the team
and the level of leadership required. The detail of the elaboration of cost element can be
referred to the later stage of the performance assessment.
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COST ELEMENTS ESTABLISHED
In reference the project development cost shall always interrelated to the timed phased of the
project phased, hence cost element shall herewith develop in manner of the phases that are
integrated with work breakdown. As developers, the cost elements in following which require
to be analysis and same part may not be applicable depending on the nature of development
business:
A) Pre Development & Development expenses
i) Professional fees
ii) Legal Fees of Gross Sale value (0.5 %)
iii) Stamp duty
iv) Statutory fees to Federal, State and Local Authorities
EIA and social impact assessment study
v) Statutory and Utility contributions e.g. TNB, SYABAS
vi) Developer Management & Administration cost
vii) Marketing and Sales cost
viii) Artist impression work, Models and graphics
ix) Site management & supervision cost
x) Contingencies at some 5 % of Development cost
xi) Total Development cost (Land + construction + Dev expense)
B) Land cost & pre construction cost should include:

i) Valuation report preparation
ii) Site investigation
iii) Squatter negotiation and clearance (If any)
iv) Soil investigation
v) Site stabilisation
vi) Premium payment for conversion
C) Construction cost (Include infrastructures)

i) Construction contractors cost
a) Building Cost
b) Infrastructure Cost
c) M&E Services
d) Interior Works
e) External Works
ii) Prime cost and Provisional Sum
iii) Demolition cost where relevant (For existing building)
iv) Show house with its interior design in place (For housing development)
v) Signage
vi) Contingencies of Construction cost
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DESIGN PARAMETERS DETERMINED
Prior to commence the project design, it is necessary to define the frameworks of

design parameters for the project, and draw upon the extensive research that has
been carried out so far. During this stage, we have developed a project brief through
discussions with the client and other stakeholders. We have carried out overall
thorough site analysis, gaining as much information as possible about the site,
surroundings and context. We will also be searching for ideas that will provide a basis
for our concept. We now need to pull all this information together in order to proceed
to the next stage.
Item Design Framework and Parameter Design

Responsibility
a) A modern eco city mall, focusing on ecological Architect &
2B management of its natural resources and diverse Landscape
development that integrate into sustainable future Architect
b) Inspired lifestyle with world-class shopping,

Architect &
entertainment, business, commerce, recreation and Space Planning
accommodation with surrounded by magnificent greenery Consultant
that forms into a self-sustaining green community.
c) Maintaining of natural “leaf” concept with its overall design

from the Phase 1, as theme to resemble the “bud” of a Architect
flower, becoming a place where more experiences
d) The exterior and interior architecture of the mall and the

towers require have a new and refreshing look and feel, Architect &
Façade
same time complementing the previous phase by using Consultant
similar material, colours, plants and finishes.
e) Require an indoor shopping mall, a canopy-covered Architect &

outdoor street retail promenade, a business hotel, an all- Space Planning
suite hotel and 3 office towers Consultant
f) Maintaining central glass atrium of bringing light and

energy into the space for allowing visitors to experience Architect
the bright skies and abundance of nature
g) Increment of new edutainment centre, sport centre add to Architect &

the mall’s existing Olympic-sized skating rink, cinema and Space Planning
full range of entertainment options Consultant
h) Conveniently arterial from the freeway as well as Architect &

connected by arterial Ring Road Network C&S Engineer
i) Retail zoning strategy to secure content visitor flow. Space Planning

Consultant
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j) Elevators require designed in the manner of juxtaposition

at every end to circulate the shopping crowd from floor to M&E engineer &
floor, ensuring each retail business owner the maximum Space Planning
exposure to engage potential consumers and crowd. Consultant
k) Increment of E-Hailing operating points, Consumer’s ease Space Planning

transportation and chatter services system Consultant
l) “Car Finder” system for the sense of security M&E Consultant &
ICT Consultant
m) Hassle-free experience in locating customers parked
vehicles M&E Consultant &
ICT Consultant
n) Planned of 500 security cameras of CCTV surveillance
IOI Mall Operator
o) Additional 150 IOI Auxiliary police officers (fully owned by IOI Mall Operator
IOI) to serve the mall with 24 hours 7 days round the clock
patrol system.
p) Increment of 12 ingress and egress points bringing all Architect &

visitors and customer to the doorstep of Mall C&S Engineer
q) Increment of 300 retail outlets
r) Exhibition Hall of 40,000.00 Sqft

Architect &
s) Entertainment centre for families Space Planning
Consultant & ID
t) Brand new cinema concepts with IMAX hall Consultant
u) Sport centre & gym
v) Alfresco dining arcade with Porte Cochere frop off zone
Coordinating design parameters
As project manager, it is crucial to acknowledge that majority of unforeseen costs and

failure of time during project initial stages much depending on geotechnical factors
confirming during design stage.
As usually, in this stage, project management playing an important role to identify and
coordinates for the execution of require tasks to be affirmed as follow:-
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Pre design parameters
1) Site investigation
 Involving of identify and observe the Location, size, zoning, access and
natural character of the development site.
 Observe the contour, drainage, trees and vegetation, rocks and valley,
and swamp and pond,
 Man-made structures to existing such as building, fencing, walls and
existing utility services fire hydrant, pylon or communication post,
electricity, water culvert gas which able to be define by eye side.
 Animal movement and crossing
2) Subsurface investigation (Soil Investigation)
 Preliminary S.I. where to define the formation levels in safety, costs and
time for geotechnical works.
 Detailed S.I. where obtaining the soil profile and properties for optimum
designs purposed.
3) Survey Report
 Information require regards the description of site condition, geology of
the site and soil condition.
 Information of existing public services utility such as electrical, gas, water,
telephone, sewer and related.
 Information of Historical report such as rain fall, flood records, right of
ways and related.
 Collection information on site visit shall need to compile as report to
facilitate the various designers in making decision on their design
parameters.
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COSTS ESTIMATED
Summary of estimated cost table of Phase 2A ca be described as follow:-
IOI CITY MALL - PHASE 2A Version : 11/17

EXECUTIVE SUMMARY COST ESTIMATE
DEVELOPMENT SUMMARY Phase 2A

Mall Hotel 1 Hotel 2
Total Land Area (35.50 Acres)
Total Built Up (NSA) - Building 5,700,000 684,000 1,025,000
Total Built Up (NSA) - Carpark 3,120,000 Sharing Sharing
Nett Lettable Build Up (NSA) 2,580,000 684,000 1,025,000
EST. GROSS DEVELOPMENT VALUE (RM) 1,548,000,000 410,400,000 615,000,000

LEASE VALUE / ANNUM (RM) 223,200,000 49,248,000 73,800,000
DEVELOPMENT COST
541,233,000 154,638,000 309,276,000
Land Cost 541,233,000 154,638,000 309,276,000
STATUTORY CONTRIBUTION 449,637,300 120,321,000 188,060,100

Development Charges 54,123,300 15,463,800 30,927,600
Improvement Services Fund (ISF) 7,740,000 2,052,000 3,075,000
Indah Water Konsortium
11,610,000 3,078,000 4,612,500
Syabas 15,480,000 4,104,000 6,150,000
TNB 3,870,000 1,026,000 1,537,500
Strata Titles & Survey 3,870,000 1,026,000 1,537,500
Legal Fees & Charges 4,644,000 1,231,200 1,845,000
Funding & Assest Related Cost 30,960,000 8,208,000 12,300,000
Developer Fees & Cost 15,480,000 4,104,000 6,150,000
Authority Fees 7,740,000 2,052,000 3,075,000
PROJECT DEVELOPMENT COST 185,760,000 49,248,000 73,800,000

Consultant Fees 108,360,000 28,728,000 43,050,000
Project Management & Administration Cost 46,440,000 12,312,000 18,450,000
Marketing Cost 30,960,000 8,208,000 12,300,000
CONSTRUCTION COST 886,400,000 137,860,000 194,125,000

Mall / Hotel 468,000,000 112,860,000 169,125,000
Carpark 218,400,000 NA NA
Infrastructure & External 200,000,000 25,000,000 25,000,000
TOTAL DEVELOPMENT COST 2,063,030,300 462,067,000 765,261,100
OPERATING & MAINTENANCE COST / ANNUM

Mall - 35% of lease value 78,120,000 17,236,800 25,830,000
RETURN OF INVESTMENT
Revenue After Operating & Maintenance (RM) 145,080,000 32,011,200 47,970,000
Return Of Revenue (%) 7.03 6.93 6.27
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BUDGETED FORMULATED
PROJECT MANAGEMENT BUDGET

Budgeted Cost Budgeted Cost
Item Internal Number Duration
/month /Project (RM)
Year 1 Year 2 Year 3 Year 4 Year 5
1 Project Manager, Internal 1 60 25,000 1,500,000 300,000 300,000 300,000 300,000 300,000
2 Resident Architect 2 60 18,000 2,160,000 432,000 432,000 432,000 432,000 432,000
3 Clerk of Works (Arch) 5 60 10,000 3,000,000 600,000 600,000 600,000 600,000 600,000
4 Resident Engineer (C&S) 2 60 18,000 2,160,000 432,000 432,000 432,000 432,000 432,000
5 Clerk of Works (C&S) 5 60 10,000 3,000,000 600,000 600,000 600,000 600,000 600,000
6 Resident Engineer ( Mechanical) 2 60 18,000 2,160,000 432,000 432,000 432,000 432,000 432,000
7 Clerk of Works (Mechanical) 2 60 10,000 1,200,000 240,000 240,000 240,000 240,000 240,000
8 Resident Engineer (Electrical) 2 60 18,000 2,160,000 432,000 432,000 432,000 432,000 432,000
9 Clerk of Works (Electrical) 2 60 10,000 1,200,000 240,000 240,000 240,000 240,000 240,000
TOTAL BUDGETED COST INTERNAL RM 18,540,000 3,708,000 3,708,000 3,708,000 3,708,000 3,708,000
External
1 Project Manager, External C&S 1 60 35,000 2,100,000 420,000 420,000 420,000 420,000 420,000
2 Project manager, External M&E 1 60 35,000 2,100,000 420,000 420,000 420,000 420,000 420,000
3 Project Manager, External Arch 1 60 35,000 2,100,000 420,000 420,000 420,000 420,000 420,000
4 Architect and Planner Team 60 45,000,000 45,000,000 18,000,000 9,000,000 9,000,000 9,000,000 3,600,000
5 Engineer Team 60 20,000,000 20,000,000 8,000,000 4,000,000 4,000,000 4,000,000 1,600,000
6 Quantity Surveyor Team 60 19,000,000 19,000,000 7,600,000 3,800,000 3,800,000 3,800,000 1,520,000
7 Landscape Architect Team 60 10,000,000 10,000,000 4,000,000 2,000,000 2,000,000 2,000,000 800,000
8 Land Surveyor Team Item 800,000 800,000 400,000 120,000 120,000 160,000 80,000
9 S.I. Specialist Team Item 450,000 450,000 450,000 - - - -
TOTAL BUDGETED COST EXTERNAL RM 101,550,000 39,710,000 20,180,000 20,180,000 20,220,000 8,860,000
TOTAL CONSULTANT AND PROJECT PERSONNEL
BUDGETED COST RM 120,090,000 43,418,000 23,888,000 23,888,000 23,928,000 12,568,000
CONSTRUCTION BUDGET - MALL

Budgeted Cost
Item CONSTRUCTION - MALL Elem. Cost NSA (M2)
/Project (RM)
Year 1 Year 2 Year 3 Year 4 Year 5
BUILDING & ARCHITECTUAL & LANDSCAPING

1 Piling 1 750 78,000 58,500,000 40,950,000 17,550,000 - - -
2 Basement 1 550 225,000 123,750,000 30,937,500 92,812,500 - - -
3 Podium 1 550 152,000 83,600,000 12,540,000 58,520,000 12,540,000 - -
4 Mall 1 1600 148,000 236,800,000 - 47,360,000 118,400,000 71,040,000 -
MECHANICAL & ELECTRICAL
5 Mechanical & Electrical 1 450 525,000 236,250,000 23,625,000 47,250,000 129,937,500 35,437,500 35,437,500
EXTERNAL
5 External & Infrastructure 1 250 525,000 131,250,000 23,625,000 47,250,000 129,937,500 35,437,500 35,437,500
TOTAL BUDGETED COST INTERNAL RM 870,150,000 131,677,500 310,742,500 390,815,000 141,915,000 70,875,000
CONSTRUCTION BUDGET - HOTEL 1

Budgeted Cost
Item CONSTRUCTION - HOTEL 1 Elem. Cost NSA (M2) Year 1 Year 2 Year 3 Year 4 Year 5
/Project (RM)

1 Piling 1 NA 78,000 Sharing - - - - -
2 Basement 1 NA 225,000 Sharing - - - - -
3 Podium 1 Na 152,000 Sharing - - - - -
4 Hotel 1 1400 64,000 89,600,000 - - 17,920,000 44,800,000 26,880,000
5 Mechanical & Electrical 1 400 64,000 25,600,000 - - 15,200,000 22,800,000 22,800,000
EXTERNAL
6 External & Infrastructure 1 250 64,000 16,000,000 - 16,000,000 - - -
TOTAL BUDGETED COST INTERNAL RM 131,200,000 - 16,000,000 33,120,000 67,600,000 49,680,000
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CONSTRUCTION BUDGET - HOTEL 2

Budgeted Cost
Item CONSTRUCTION - HOTEL 2 Elem. Cost NSA (M2) Year 1 Year 2 Year 3 Year 4 Year 5
/Project (RM)

1 Piling 1 NA 78,000 Sharing - - - - -
2 Basement 1 NA 225,000 Sharing - - - - -
3 Podium 1 Na 152,000 Sharing - - - - -
4 Hotel 1 1400 95,000 133,000,000 - - 79,800,000 53,200,000 -
5 Mechanical & Electrical 1 400 95,000 38,000,000 - - 15,200,000 22,800,000 22,800,000
EXTERNAL
6 External & Infrastructure 1 250 95,000 23,750,000 - 23,750,000 - - -
TOTAL BUDGETED COST INTERNAL RM 194,750,000 - 23,750,000 95,000,000 76,000,000 22,800,000
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PROJECT FUNDING REQUIREMENT IDENTIFIED
Projects are investments made by a company or organization to achieve something of

worth. Whether it is developing a new product or improving the way the organization
operates, there is value in successfully completing the project. As such, there is always
a cost involved with initiating, planning, executing, monitoring, and closing a project.
Not only does the organization need to pay the salaries of the project manager and
team, but there are potentially many other costs of the project. Some of these include
equipment/technology, overhead (taxes, utilities, leases), or other materials needed to
complete the work.
Most projects do not get started until a thorough analysis is done on how much funding
is required to complete the project and what the return on investment will be. These
determinations help establish the project’s cost baseline. However, once the project is
approved there must be funding in place to begin the work. There are many ways
projects receive their funds. Some projects receive all of the required funding up front
and the project manager carefully manages the funds over the project’s lifecycle. Many
projects receive funds incrementally based on project phases of the accomplishment
of milestones. The project team and sponsor must determine the most effective way
to allocate project funds and incorporate any reserves identified.
Stages of funding requirements

The need of a contractor for financing in a typical construction business can be divided
into 3 stages as follows:
Initiation of development Stage

The financial requirement to this shall be minor portion comparing to the whole
development process. During this, conceptual approval of development being
obtained from management group in the form of feasibility study and analysis,
conceptual of development, financial strategy and revenue return analysis. This stage
shall be the initiation model of the group property development needs in identifying the
group’s goals and objectives in his sustainable development vision and mission.
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Pre-development Stage
The financial obligations to be fulfilled during the pre-development stage are
commonly for the project development initiation items. These are the working capital
for acquiring Professional in marketing and sales study and analysis, conceptual
design development, feasibility study and analysis, valuation report, legal fees and
stamp duty and provision of management fees from the group property development
team and facilities. The pre-development stage only contributes a small portion of the
financial needs of a developer as operation requirement. However, for a much larger
scale project, this stage can consume a considerable sum of the developer’s budget
due to complexity requirement for the particular development needs.
Development Stage
Pre-Construction Stage
The financial requirement and needs during this stage shall consists of part
commencement of physical development activities such as site investigation
(surveying and soil investigation), squatter negotiation (if any), statutory submission
fees clearance including premium for conversion and others related development
expenses, detail design development from various consultants, procurement
requirement, marketing and sales expenses. During this stage, funding will be
allocated from the management and executed as accordance to the approved
budgeted which shall be consideration sum of the development financial requirement.
Construction Stage
During this development stage, financial and funding is most critical stage of a
developer in realising their end development product from various procurement needs
of contractors, sub-contractors, suppliers, tradesman and artists’ works and specialist
fit out work till the project completion stage. Project Management team, marketing and
sales team, show housing (if require), Training and pre-operation teams in ensuring
the realisation of development’s goals and objective. Financing are required for both
working capital and fixed capital which various from one development to another.
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Post-development Stage
During the post-development stage, the development needs to bear the cost of the
operation and maintenance in building asset management especially in commercial
development and public property such as mall, hospital and leisure development
require extensive maintenance expenses compare to housing development project. In
any events that developer will have requirement to improve the existing facilities which
may include the demolition and reconstruction of new facilities, hence, such cost
required to be funded by developer. In the event that poor quality delivery of
construction works from contractors during construction, developer will have higher
operational and maintenance cost to their product.
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PROJECT FUNDING STRUCTURE AND SOURCES IDENTIFIED
In overview, there are various types of funds to finance a project. However, funding
can be classified as internal funding and external funding are two types common of
project financing and funding in development and construction industry in Malaysia.
Any project that is being funded entirely by using its own funds or under the company’s
account is considered as internal funding while other than that is considered using
external findings if it come from external. External sources of funds often classified
into short term, intermediate term and long term. Trade credit, factoring or blanket
facility and overdraft facility falls under short term financing while leasing and mortgage
falls under intermediate term financing. In long term financing, there are bonds,
debenture, equity shares, public-private partnership (PPP), private finance initiative
(PFI) and product development partnership PDP are the options that could be used to
obtain fund. The table below shows the differences between the options of external
funding sources that is available and suitable to be used in Malaysia:
SHORT TERM FINANCING of funds for payment of costs associated with the
building of a construction project (In Construction industry)
The credit terms allowed by suppliers and sub-contractors are

trade credits for which there are no cost attached. Short term in
30 - 90 days.
TRADE In construction industry, prompt payment offer with payment
CREDIT discount but should be reviewed and take advantage to this if
shall is profitable and sufficient cash flow available in good cash
flow planning
When company’s payment periods are long, the debts can be

factored out to a finance company or commercial banks that
provide as such service. Cash received is equal the debt amount
FACTORING / factored out less the factoring charge at point of factoring.
BLANKET Happened normally when contractor approach the finance
FACILITY
company or commercial bank for facilities where they can present
the progress payment certificate to the banker for cash advance
based on the certain percentage value of the certificate amount
When bank approves the request for an overdraft (OD) facility in

a given sum, As and when funds are needed it could be drawn
OVERDRAFT
FACILITY against the OD facility. Maximum withdrawal is based on the
maximum of OD. OD facilities can be secured and unsecured on
collateral offered as security or by personal guarantees.
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MEDIUM TERM FINANCING frequently referred to as term financing / term

loan. Associated with the purchase of machinery or equipments for the
permanent increase in the firm / company current asset such as material
inventory.
Finance Leases - Company’s approaches commercial bank for a

finance lease to buy a plant or equipment from a third party vendor
at an agreed rate of interest. The bank maintain charge on the
item. The money is used to purchase the required item from the
vendor. The company’s owns the asset.
Operating Leases - Large capital requirements for plants &

equipments can be met by taking a lease for each of these items
from the item vendor. This allows the company to use the capital
items in exchange for an agreed periodic payment in the form of
a lease payment. The company does not own the equipments. On
maturity, the terms may allow the company as the lessee to own
the assets by exercising its option to purchase from the lessor at
the pre-agreed sum
LEASING /
MORTGAGE Sale and Leaseback - Where a company has large stock of
machinery or heavy equipment which has been fully paid for, it
can be sold to a leasing company and immediately leased back.
This allows the company to take a lump sum to finance its project
needs. They repay the amount with interest through an agreed
periodic leasing payments schedule. These capital items or
assets belong to the lessor (lender) not the company until the final
payment when the company can exercise its rights to purchase at
the pre-agreed sum.
Hire purchase - this is similar to leasing but the asset ownership

is the company not the lessor (lender) who only has a charge on
it. They can repossess them if the company defaults in its
payment.
LONG TERM FINANCING is to secured company’s main assets.
Bonds maybe issued by large companies that undertaken mega

projects. Repayable by specific agreed time (example: maturing
BONDS
in 10, 15 or 20 years) or it can be converted at the investors
discretion into equity shares at pre agreed time at pre-agreed
value.
These are long term loans secured by either the property for
DEBENTURES
which the debenture was issued or on the overall company
properties or even on its overall operations. However the risk is
high, if the company is unable to repay the debenture by its due
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date, the debenture holders are at liberty to seize the assets that
it has secured and even foreclosure proceedings that can
embarrass the company and thus impact its credit standing in the
financial and construction community
A company can raise its long term funds required. Normally done
EQUITY SHARE
through its merchant bankers, listed companies can issues a
fresh lot of equity shares to the public for a stake in the company.
PPP involves the transfer to the private sector on the

responsibility to finance and manage a package of capital
investment and services including the construction, management,
maintenance, refurbishment, and replacement of public sector
assets. PPP is often used in state of municipal activities which is
PPP involving services provided to the public need. Local government
forms the third tier in the government structure in Malaysia which
it is one of the prominent parts. The public and private party may
include in the contract which would provide liabilities and
undertaking of both parties of the project.
Built, Operate and Transfer (BOT), Built and Operate (BO), Built
Lease Transfer (BLT) for new projects and outright sale, lease,
management buy-out and corporatisation for existing projects are
PFI
the example of PFI types in Malaysia. The main aim of PFI is to
encourage private participation in the local construction
development and to reduce government‘s expenditure in
providing public infrastructure and services.
An important trend in global health R&D are a type of public-

private partnership called product development partnerships
(PDPs). PDPs are a unique, non-profit business model bringing
PDP together public, private, academic and philanthropic sectors to
develop technologies for global health. It can be adapted in
construction sector.
Without a proper planned of cash flow and limited funding cost benefit analysis (CBA),
sensitivity analysis and feasibility studies could be done further to confirm the
feasibility and viability of the project and also to determine the returns rate from the
project if it is considered as an investment to the project owner hence increasing the
successful rate of the project.
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MERIT OF FUNDING SOURCES EVALUATED
Important sources of short-term finances are Trade Credit, Overdraft, Discounting of

Bills and Short-term loans. They are briefly explained as follows.
Sources of Funding Merits of Funding

Trade Credit 1. It enables a business organization to make payment for
the purchase of goods at a later date.
2. It does not require legal formalities.
3. It does not create any charge on the assets.
Overdraft 1. The current account holders can withdraw when the
needs arise
2. It enables the business to withdraw more than the balance
available in the current account.
3. It is a good source of flexible working capital
Factoring / Blanket 1. It can be a cost-effective way of outsourcing your sales
ledger while freeing up your time to manage the business.
Facility
2. It assists smoother cash flow and financial planning.
3. Protected from bad debts if you choose non-recourse
factoring.
4. Cash is released as soon as orders are invoiced and is
available for capital investment and funding of your next
orders.
Leasing/ 1. Regular repayments - Medium-term finance comes with a
Mortgage regular repayment schedule that is straightforward to
understand. A business must make repayments on a
monthly basis in this type of finance. It can also help them
manage their cash flows accordingly. The terms of
medium-term finance are preset in the loan contract
between the financial institution and the business
acquiring the loan.
2. Fixed interest rates - Apart from the fixed repayment
schedule, medium-term finance also comes with fixed
interest rates. The interest rate is a part of the contract for
the finance and, therefore, predetermined.
3. Credit score - Medium-term finance is a great way for
businesses to improve their credit scores, especially ones
with a bad credit history or credit rating.
4. Less risky for lenders Medium-term loans can also be
beneficial for lenders. Usually, lenders require the
borrower to have a good credit score before providing the
loan.
Bonds 1. Bonds offer safety of principal and periodic interest

income, which is the product of the stated interest rate or
coupon rate and the principal or face value of the bond.
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2. Bonds are ideal investments for retirees who depend on

the interest income for their living expenses and who
cannot afford to lose any of their savings.
3. Bond prices sometimes benefit from safe-haven buying,
which occurs when investors move funds from volatile
stock markets to the relative safety of bonds.
4. Governments and businesses issue bonds to raise funds
from investors. Bonds pay regular interest, and bond
investors get the principal back on maturity.
.
Debentures 1. Debentures ensure a higher position in the ‘pecking order’
for repayment as a creditor.
2. Valuable financial protection and reassurance is provided
for directors as regards their personal funds.
3. Encourage long-term funding to grow a business. It is also
cost-effective when compared with other forms of lending.
4. Provide a fixed rate of interest for the lender, and this has
to be paid before any dividends are issued to
shareholders.
5. Control of the company by existing shareholders is not
reduced, and profit-sharing remains in the same
proportion.
Equity Share 1. The funding is committed to your business and your
intended projects. Investors only realise their investment
if the business is doing well, eg through stock market
flotation or a sale to new investors.
2. You will not have to keep up with costs of servicing bank
loans or debt finance, allowing you to use the capital for
business activities.
3. Outside investors expect the business to deliver value,
helping you explore and execute growth ideas.
4. Some business angels and venture capitalists can bring
valuable skills, contacts and experience to your business.
They can also assist with strategy and key decision
making.
5. Investors have a vested interest in the business' success,
ie its growth, profitability and increase in value.
6. Investors are often prepared to provide follow-up funding
as the business grows.
PPP 1. They provide better infrastructure solutions than an
initiative that is wholly public or wholly private. Each
participant does what it does best.
2. They result in faster project completion and reduced
delays on infrastructure projects by including time-to-
completion as a measure of performance and therefore of
profit.
3. A public-private partnership's return on investment (ROI)
might be greater than projects with traditional, all-private
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or all-government fulfilment. Innovative design and

financing approaches become available when the two
entities work together.
4. Risks are fully appraised early on to determine project
feasibility. In this sense, the private partner can serve as
a check against unrealistic government promises or
expectations.
5. The operational and project execution risks are
transferred from the government to the private participant,
which usually has more experience in cost containment.
6. High-quality standards are better obtained and
maintained throughout the life cycle of the project.
7. Public-private partnerships that reduce costs potentially
can lead to lower taxes.
PFI 1. Long-Term Relationship - PFI stressed the development

of long term relationship between public sector and
private sector. PFI projects can provide a powerful
incentive in order to learn from each other, share the
knowledge, innovate and continuously improve the
performance between private sector and public sector in
project delivery. Partnering is a crucial key of PFI
procurement, the good performance of which will lead to
the success of the project.
2. Public Saving – PFI procurement has the potential to
reduce the cost, and deliver better quality work with the
same cost in other procurements. (Bing and Akintoye,
2003) Research shows that the government’s investment
using PFI procurement, Government and Local authorities
are keen to use PFI to deliver a project via partnership as
they do not need to borrow money from the banks.
3. Private Profit - One of the benefits for private sectors to
take PFI is that under the long term ownership, they can
gain incomes and profits under their management and
operation, or exchange benefits with the government. One
of the key drivers for the motivation of the PFI is the steady
and long term income stream and higher returns and
profitability.
4. Better Management Skills - As private financers are more
capable for management in business in various fields, the
government believes that the private sector has a better
role to offer project management skills, innovative design
and facility and risk management.
5. Long Term Contract - In PFI, contractors are tied into a
long-term commitment, so that it reduces that a contractor
can walk away during the project if no sufficient funding is
in place. Even though contracts might restrict this from
happening, but it is difficult to design and impose broad
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articles and clauses in the contract for a long contractual

period.
6. Risk Transfer - Risk transfer is also an important element
for delivering a good PFI project. PFI will reduce the risk
level carried by the government and transfer it to the
contractors. Apart from public procurement cost risk, there
are also other risks such as site use, site operation and
access, building standards, operations and management,
financial conditions, maintenances and services, residual
value and revenue etc. where those risks can all be
considered and transferred to private side. Such risks
being transferred from public sector to private sector
through a PFI route is considered to be adding value for
money for public project, as private sector will solely
manage the project cost, time and quality.
7. Less Construction Time - PFI is considered to be one of
the procurements which can deliver project under or on
time.
8. Delivery against Budget - PFI is also considered to be one
of the procurements which can deliver project under or on
budget.
9. Innovation Approach - PFI schemes allow the private
bidders to explore their appetite to develop creational and
unique projects which can also meet the required
standards from the government. when the project is the
ownership of private sector, following government’s
specifications, private financiers has own power and
freedom to implement an innovative approach to meet its
own requirements.
PDP 1. Competitive Edge - PDP partnerships aim to produce new
or improved products or to innovate operations. When
they succeed, PDP partnerships help organizations stay
ahead of the competition and maintain customer
satisfaction over time.
2. Profit Sharing - Depending on the nature of the
partnership, investors will receive a percentage of the
product’s profits, if any, along with benefits like
depreciation of equipment. Profit sharing is defined in the
PDP partnership agreement.
3. Cost and Risk Sharing - Just as profits are shared among
partners, so too are research and development costs and
the risks associated with the investment of time, money
and other resources. Sharing risk in this way can help
members, especially those that are smaller or less
established, take on more ambitious and potentially more
valuable PDP projects.
4. Decreased Time-to-Market - By pooling resources like
funding and special knowledge, members of PDP
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partnerships often produce results faster together than

they could alone. This means that, through their
collaboration, PDP partnerships can accelerate the
creation phase and bring potential new products or
systems to market faster.
5. Resource Sharing - Some PDP partnerships are designed
to place more weight on resource sharing than on creating
new products. In this case members have the opportunity
to improve their own systems and offerings without
investing in often costly assets like prototyping equipment,
access to research documents, etc.
6. Research and Development Tax Incentive - In some
cases investing in PDP can reduce taxable income. If this
is of importance, members should look into potential PDP
tax credits before investing.
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FUNDING ACQUISITION SUPPORT DOCUMENTS PREPARED
With the IOI property groups, development process will involve approval procedures
of group’s management and board of management prior the commencement of
property development which consists of business plan, cost management plan,
development and operation plan for onward approval of board’s approval in
development procedures. Fundamental of the document shall consists of the
following:-
Project Charter
Project Charter - the process of developing a document that formally authorizes a

project or a phase and of documenting initial requirements that satisfy the
stakeholder’s needs and expectations. The project charter provides the project
manager with the authority to apply resources to project activities.
Key inputs to the project charter are:
1) Project statement of work that described the business need, the product scope
description, and the organization strategic plan (especially the way that the
project in fulfilment of group’s strategic vision).
2) Business cas that provides the necessary information that is needed from a
business standpoint. The business case is a consequence of (or a combination
of) a market demand, an organizational need, a costumer request, a
technological advance, a legal requirement, an ecological impact, or a social
need. Typically, it includes the business need and the cost-benefit analysis.
Project charter is prepared, as initial tool and technique, the “expert judgement”—from
internal group expertise with consultants, stakeholders (like costumers or sponsors),
professional and technical associations, industry groups, subject matter experts, and
project management offices.
Project charter documents the business needs, and it should contain the project
purpose or justification, the measurable objectives and success criteria, the high-level
requirements, high-level project description, high-level risks, summary milestone
schedule, the summary budget, project approval requirement and authorities,
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assigned project manager (responsibility, authority level), and name and authority of
the project sponsor or other individual(s) authorizing the project. Project charter is the
key deliverable in making the decision to invest in this or other projects.
Cost and Financial Management Plan

Cost Management Plan
Project Cost Management plan is the processes involved in estimating, budgeting, and
controlling costs so that the project can be completed within the approved budget.
Cost is fundamental to determining the budget, the cost baseline, and the earned value
management (EVM), since it compares the planned value on the budget with the real
cost on the accountancy. Estimate Costs is the process of developing an
approximation of the monetary resources needed to complete project activities, and
Determine Budget is the process of aggregating the estimated costs of individual
activities or work packages to establish an authorized cost baseline. Control Costs is
the process of monitoring the status of the project.
Cash flow analysis is considered as examining the schedule for the program’s
revenues and expenses. It is stated to be the analysis of the funding needs,
considering, for instance, that in the construction industry funds are usually released
when milestones are met. Cost baseline, although it should incorporate all the work
that is produced for planning in all the other knowledge areas, is one of the most
important sources of information for control purposes.
Financial Management Plan
Financial Management Plan involvement of determine the need for a new facility or
improvement and then performs, or has performed, a further study (often called a
feasibility study) to more clearly define the viability and form of the project that will
produce the best or most profitable result. The study usually involves a review of
alternates that may satisfy the need (value management) and the desired form of
financing. Financial management also defined as the processes to acquire and
manage the financial resources for the project, and it is more concerned with revenue
source and analysing and updating net cash flows for the construction project than is
Cost Management. Cost Management is stated to be related more to the management
of the day-to-day costs of the project for labour and materials, while financial
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management is more oriented towards the analyses of the net cash flow. That can be
sub – division as processes are: (1) Financial Planning, (2) Financial Control, and (3)
Administration and Records.
A) Financial Planning
Planning is the phase in which all requirements of a financial nature are

identified and provided for. Tasks must be identified, requirements placed on a
timescale and quantified, and necessary resources to the financial
management must be considered which included the following:-
1) Source of fund
2) Contract requirement
3) Economic environment
4) Estimated construction cost
5) Project duration
6) Tax benefit
7) Financial advisor
8) Risk factors
B) Financial Control
Finance Control assures that financial control and cost control are executed in
the most effective way to ensure that all items are within budget and the
financial cash forecast. Inputs are contract requirements, project financial plan
(both as described in the previous section), cost and revenue benefits (the
forecasts developed for the financial plan), and change requests (the impact of
change requests either in cost or revenues streams must be analysed and
incorporated into the financial plan and their effect in borrowing and other
features considered).
C) Financial Administration and Records
Process assures that financial information is administrated and that records are
well made. Inputs are the previously presented financial status reports, contract
requirements (attention to contract clauses), and project financial plan.
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Feasibility Study Plan
Feasibility study is a study made to determine if the project can be profitable or whether
the proposed payments will be enough to provide for the cost and a reasonable profit.
Cash flow measurement is a prime way to determine the viability. Money outflow is
determined as being the schedule payments for subcontractors, vendors, fees,
insurance, taxes, and support staff. By analysing revenue and expenditure, the net
cash flow (inflow minus outflow), and basic finance requirements are determined.
The formulation of a feasibility study in financial is a method primarily used by the

sponsor with the objective of establishing three key variables:
a) Investment
b) Cost of operation
c) Benefits of operation
Financial Analysis Model
The model of the financial model and analysis can be described as follow and full
document can be obtained as APPENDIX A
Item Description Year 0 1 2 3 4 5

(A) Capital Expenditure (Current) RM mil 2,611 471 662 624 614 240
1 Development Cost 421 200 221
2 Project Development Cost 257 40 60 60 60 37
3 Statutory Contribution 558 200 150 125 50 33
4 Const. Cost - Carpark 218 120 98
5 Const. Cost - Mall 468 80 150 200 38
6 Const. Cost - Hotel 1 113 60 53
7 Const. Cost - Hotel 2 170 120 50
8 Const. Cost - Infra 250 100 100 50
9 Marketing & Sales 51 10 10 10 10 11
10 Corporate Overheads 5 1 1 1 1 1
11 Contingency 100 20 20 20 20 20
Cost Exclation 5.0%
CAPEX (Future) RM mil 2,693 495 730 722 746 306
Capex Model
REVENUE (future) 14125 0 0 0 340 455 471 488 505
CASHFLOW (future) 8897 -495 -730 -722 -406 136 404 417 431
Loan Repayment 3052 305 305 305 305 305
Dept cover factor 1.10 -1.33 0.45 1.33 1.37 1.41
POST FINANCE CASHFLOW -133.8 -226.5 -227.4 -711 -169 99 112 126
Cummulative CASH FLOW -495 -1224 -1947 -2353 -2217 -1812 -1395 -964
Revenue Model
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VIABILITY Hurdle rate 8%

PV (COST) 3078 458 626 573 549 217 42 41 40 39
PV (REVENUE) 4645 - - - 250 310 297 285 273 261
NPV 1568
IRR (CASHFLOW) 13%
Trunch
Total Fund required 2353 1 2 3
Dept/Equity 50% Equity 1176.5 223 377.5 379
Loan Principal 1176.5 repayment
Pricipal+Interest 10% 3052 305 EIRR 14%
Tenure (yr) 10 ENPV 586
Trunch 1 223
Trunch 2 378
Trunch 3 379
Analysis and Viability Model
ALTERNATIVE SOLUTIONS TO CONVINCE FINANCIERS PROVIDED
Other than the above relevant of the development funding, property development team
will need to further in present to the board on management in convincing the
investment strategy as accordance to the groups’ sustainable growth strategy and
objective.
a) Surrounding related development – By continuous development to the

commercial property development, the sustainable and value of surrounding
residential development in attracting the customer crowds have direct impact
to the demand from investor in housing estate due the increment of needs and
job opportunity available. This can be seen from recorded residential
development to the Conezion Residences, The Clio Residences where high
demand from investor due to surrounding commercial development.
b) Successfully of existing Mall Operating –

As recorded from groups’ financial report
and annual operating reporting which has
recorded towards the sustainable of group
real estate and development business.
Growth Rate
This can be shown in public statics in
group’s overall growth of convince the financiers in corporate leading property
investment in this region.
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c) Award and Recognition - Over the years since operation in 2014, IOI City Mall
received several awards which brought its name to International stage and
known for one of the highest occupancy rate among the Klang Valley. This has
built up and strengthen with a reputable crowd magnet that attract both
consumer patronage and business associates to setup regional flagship stores.
Today, IOI City Mall is widely recognised as a trutly thriving, fully intergrated
regional mall and have been significant titles including :-
1) FIABCI – MALAYSIA
 Malaysia Property Award 2016 ( Winner of Retail Category )
2) ICSC GLOBAL AWARDS ASIA PACIFIC

 Design and Development – New Development Silver Winner
d) Strong and Capability of Management - All property development of IOI

property group is delegated under the strong and capable property
development management
group range from the resort, GROUP CEO
LEE YEOW SENG
hotel commercial and PROPERTY DEVELOPMENT

TEH CHIN GUAN
residential development.
GROUP FINANCIAL GENERAL MANAGER GROUP
GENERAL MANAGER GROUP LEGAL
The management ensuring CONTROLLER

CONTRACT
PROJECT
WONG PPEN FOOK
ADMISTRATOR
in sustainable growth and FINANCE DEPARTMENT

CONTRACT &
COMMERCIAL TEAM
PROJECT
MANAGEMENT TEAM
long term return investment PROJECT

CONSULTANT PANEL
TENANTS AND
RETAILS
GROUP MARKETING
return in real estate which DIRECTOR IMPLEMENTATION

TEAM
has been physically proven INTERNAL

MARKETING TEAM
the growth of investment

EXTERNAL
property development MARKETING TEAM
product with high

Group Property Organisation
commitment in each of the
development cycle.
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FUNDING SECURED FOR CLIENT
In group management, funding will be obtained from the internal funding such as group
retain funding, operational revenue funding where there are always be an option of
raising external funding from the public in share and equity funding including the
commercial financing. However, project team require to seek for relevant management
approval before funding can be ready for approved development from the
shareholders. Upon identification of the approval of development, management will
herewith issue the relevant notice to various department as notification of development
initiation. As project manager, the following precondition is required obtaining the
management approval of the said development prior to the funding approval process.
a) Knowledge of source of funds available

b) Knowledge on how to get the source of fund
c) Management procedures of fund approval
d) Company performance records
e) Appraisal of the project being undertaken
f) Viability of project proposal
The following described the property management funding approval process and
procedures for overall operation requirement.
DATA
TEAM
INPUT, DEVELOPMENT INTIATION FUNDING REVIEW, APPROVED
INTERNAL Meets Needs

PROJECT Workshop & Review Concept & Received & Confirmation and
MANAGEMENT Review Design Report Final Review & Approved Distribution
Requirement
N
Y
STAKEHOLDER / N Needs & Client's Review and Client's Review and
CLIENT
Requirement Review Approved Approved (Commercial & END
(Technical) Financing)
Options Concept Update Concept

DESIGN
TEAM Costing Design Report report and submit Y N
Required
Meets Needs
PROPERTY Y
&
TEAM
Requirement
ESTIMATION Costing
TEAM Proposal Options
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SIEW UO YONG
APPENDIX A
58

LP04 - PA Project Financing and Funding

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IOI CITY MALL PHASE 2

LP04 – PROJECT FINANCING & FUNDING

1.0 Performance Assessment 3

3.0 Project Information 11

5.0 Project Requirement Statement Reviewed 17

6.0 Feasibility Report Analysed 20

7.0 Cost Elements Established 33

8.0 Design Parameters Determined 34

9.0 Costs Estimated 37

10.0 Budget Formulated 38

11.0 Project Funding Requirement Identified 40

12.0 Project Funding Structure And Sources Identified 43

13.0 Merit Of Funding Sources Evaluated 46

14.0 Funding Acquisition Support Documents Prepared 51

15.0 Alternative Solutions To Convince Financiers Provided 55

16.0 Funding Secured For Client 57

© CIDB 2010 (Original CIDB 2005)

PROJECT FINANCING AND FUNDING

© CIDB 2010 (Original CIDB 2005)

Trainee Name: SIEW UO YONG

Date: 5 FEBRUARY 2021

Skill Task No. Task Coverage

This Performance Assessment is to assess your performance on tasks 02.04 and

TERMINAL PERFORMANCE OBJECTIVE (TPO):

Procure project funding USING conceptual design drawings, terms of reference,

DIRECTION TO THE TRAINEE:

Before beginning the performance assessment, carefully review the checklist.

© CIDB 2010 (Original CIDB 2005)

DIRECTION TO THE RESOURCE PERSON:

Your performance will be assessed accordingly to the assessment criteria below:

1. Review the Project Requirement Statement (PRS)

2. Analyse project feasibility report

3. Establish cost elements

4. Determine design parameters

7. Identify project funding requirement

8. Identify project funding structure and sources

9. Evaluate the merit of funding sources vis-à-vis funding needs

10. Prepare funding acquisition support documents

11. Provide alternative solutions to convince financiers

12. Assist client in securing fund

© CIDB 2010 (Original CIDB 2005)

TOOLS AND EQUIPMENT:

 Conceptual design drawings

 Risk management model

© CIDB 2010 (Original CIDB 2005)

PERFORMANCE ASSESSMENT SHEET

PROJECT FINANCING AND FUNDING

First attempt Second

2 Feasibility report analysed

3 Cost elements established

4 Design parameters determined

12 Funding secured for client

© CIDB 2010 (Original CIDB 2005)

Verification Result: Not Competent First attempt Second attempt

Name and Signature of Assessor: CIDB Stamp:

© CIDB 2010 (Original CIDB 2005)

CLARIFICATION OF CASE STUDY

As such, in relation to the performance assessment objective and the

ii Estimated Value TOTAL : 2,000.00 Million ( 2.0 Billion )

vi Client: IOI Properties Group Berhad @ IOI City Mall S/B

vi Contractors BASEMENT AND COMPLEX

TOWER 1 (MOXY HOTEL)

vii Project Manager IOI Properties Sdn Bhd @ PM LINK LTD