PUTRAJAYA: The Bandar Malaysia project, which was previously linked to 1MDB, will take off after the government signed a deal with a Chinese company today.
In a joint statement, TRX City Sdn Bhd, a wholly owned subsidiary of the finance ministry, said it has entered into a deal with IWH CREC Sdn Bhd, the consortium comprising lskandar Waterfront Holdings (IWH) and China Railway Engineering Corporation (CREC), to develop Bandar Malaysia.
IWH-CREC is acquiring 60% equity stake in Bandar Malaysia Sdn Bhd, the project’s master developer, from its parent company, TRX City.
Putrajaya had approved the reinstatement of the project in April.
The signing ceremony for the revived multi-million ringgit project was also attended by Economic Affairs Minister Mohamed Azmin Ali, Finance Minister Lim Guan Eng and Transport Minister Loke Siew Fook.
A condition of the deal is that IWH-CREC, being the master developer, must build 10,000 units of affordable homes in Bandar Malaysia.
Bandar Malaysia will be located on 195.5ha in Sungai Besi in the heart of Kuala Lumpur, and the government is said to have requested for a 28.3ha park that will be the green lung in the centre of the massive development.
The consideration for the stake sale is anchored on Bandar Malaysia’s land valued at RM12.35 billion, the statement said.
The project’s expected gross development value is RM140 billion, it said.
In the revived deal, the staggered payment term has been shortened from the original seven years to three years.
he statement also said in addition to the original deposit sum of RM741 million, IWH-CREC will pay an additional RM500 million as advance payment, bringing the total advance to RM1.24 billion.
The project was cancelled by the then Barisan Nasional government in May 2017, citing that IWH-CREC had failed to meet payment deadlines for the purchase of a 60% stake in the project. - FMT
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