Raffles Infra partners Korean fund to bid for Bangladesh project

RAFFLES Infrastructure Holdings is partnering a South Korea-based asset management company to jointly submit proposals to tender for a contract under a US$800 million township development project in Bangladesh.

Raffles Infrastructure said KORAMCO Fund, a real estate and energy/infrastructure fund, is prepared to provide funding of up to US$80 million for the project, which is led by the Bangladesh Army Welfare Trust.

Both entities have inked a non-binding memorandum of understanding and want to present themselves as the partner with financial funding expertise and real estate development expertise for the township project in Baunia.

The Baunia project sits on about 50 acres (20 ha) of land, with a construction area of about 10.8 million square feet in land area. The aim is to develop accommodation for the middle- to low-income group, with civil and community facilities.

If awarded a contract, Raffles Infrastructure could be appointed the master planner, developer and manager of Zones 2, 3 and 4 within the Baunia Project. It will work alongside other companies such as Surbana Jurong and CNQC Engineering & Construction, which are anticipated to partake in the project.

Raffles Infrastructure said the partnership with KORAMCO Fund could take the form of a new joint-venture company, or a contractual partnership.

Raffles Infrastructure shares closed at S$0.25 on Friday, up S$0.04 or 19.05 per cent.