Two bidders shortlisted for Bandar Malaysia stake sale

KUALA LUMPUR (Nov 13): The race to pick up a 60% stake in 1Malaysia Development Bhd’s (1MDB) prized project Bandar Malaysia is down to two bidders, one of which is said to be a consortium led by a China-based company in a tie-up with tycoon Tan Sri Lim Kang Hoo and several other local developers.

According to sources, the other bidder is a Singapore-led consortium.

It is understood that the Chinese firm has also expressed an interest to participate in the Kuala Lumpur-Singapore high-speed rail (HSR), which will have a terminal in Bandar Malaysia.

In a statement yesterday, CH Williams Talhar and Wong (WTW) — the transaction adviser to Bandar Malaysia’s master developer 1MDB Real Estate Sdn Bhd (1MDB RE) — said it received two final, binding and funded bids from development partners for the proposed sale of the 60% stake in Bandar Malaysia Sdn Bhd, but did not name them.

WTW said it, together with 1MDB RE, are currently seeking clarification and undertaking a comprehensive analysis of the two bids.

A recommendation will then be made to the 1MDB board of directors, chaired by Tan Sri
Lodin Wok Kamaruddin.

“WTW is pleased to confirm that the final binding bids fully reflect the expectations of 1MDB RE in terms of land valuation, payment terms and certainty of transaction.

“Accordingly, 1MDB RE is confident that a development partner will be selected and a definitive agreement will be executed by year end, as envisaged by the 1MDB rationalisation plan,” the real estate agency said.

Bandar Malaysia will feature a mixed-use urban development that is expected to serve as a catalyst for the transformation of Greater Kuala Lumpur. The development has received planning approval from Kuala Lumpur City Hall, with an average gross plot ratio of 4.05 across the entire 197ha site.

Bandar Malaysia is expected to host the terminus for the Singapore-Kuala Lumpur HSR, as well as mass rapid transit lines 2 and 3, KTM Komuter, express rail link and future access to major highway networks.

1MDB RE, which is a wholly-owned subsidiary of 1MDB, is also undertaking the Tun Razak Exchange project in Jalan Tun Razak.

The commercialisation of Bandar Malaysia is part of 1MDB’s rationalisation plan that was presented to the Cabinet on May 29.

On Sept 11, WTW announced that four companies and/or consortia had been shortlisted and approved by 1MDB as potential development partners in the Bandar Malaysia project.

The four preferred bidders were shortlisted from the 12 proposals submitted at the closing date of a request for proposal on Aug 28, and included proposals from domestic private developers, government-link corporations and foreign parties, either submitted independently or as a consortium.

On Sept 28, The Edge Financial Daily reported that Lembaga Tabung Angkatan Tentera was said to be keen on taking part in the Bandar Malaysia development.

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This article first appeared in The Edge Financial Daily, on Nov 13, 2015. Subscribe to The Edge Financial Daily here.