Consortium says all payments made, wants Bandar Malaysia deal to proceed

The consortium comprising Iskandar Waterfront Holdings and China Railway Engineering Corporation rebutted claims that it had failed to make the necessary payments to acquire a 60 percent stake in Bandar Malaysia.

The consortium's vehicle, IWH CREC Sdn Bhd (ICSB), said it has made all necessary payments thus far, as outlined in the share sale agreement (SSA), and is also capable of meeting future payments.

"To date, ICSB has fulfilled all the required payment obligations under the SSA on its part towards TRX.

"ICSB has sufficient financial resources and capabilities to ensure the smooth and successful execution and implementation of the development of Bandar Malaysia," it said in a statement today.

The statement came in response to TRX City Sdn Bhd, the Finance Ministry-owned holding company of the Bandar Malaysia land, which announced on Wednesday that the deal was off.

TRX City claimed the agreement had lapsed because the consortium failed to make the necessary payments despite repeated extensions.

ICSB disputed this claim.

"ICSB is of the view that TRX's allegation that the SSA has lapsed runs contrary to the conduct of the parties in progressing the SSA towards its completion, in accordance with the spirit of the SSA thereof.

"Prior to ICSB's receipt of the TRX letter (claiming the agreement had lapsed), TRX was aware that ICSB has complied with the conditions precedent and accordingly the SSA has become unconditional.

"ICSB has officially requested TRX for the completion of the SSA," it said.

It added that ICSB has also written to TRX to express that the unilateral claim that the agreement had lapsed was "unacceptable".

"ICSB reserves all its rights in this matter," it said.

The consortium had signed a memorandum of understanding in December 2015 to acquire a 60 percent stake in the 486 acres of prime land in Sungai Besi for RM7.41 billion.

The real estate is seen as an important component of Kuala Lumpur's development, as it will host the terminal of the Kuala Lumpur-Singapore High Speed Rail as well as future MRT stations.- Mkini