Bandar Malaysia agreement with IWH CREC lapses, opens to new expressions of interest

KUALA LUMPUR (MAY 3): The master developer of Bandar Malaysia, TRX City Sdn Bhd, has today announced that the share sale agreement (SSA) with Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC) – who on July 21, 2016 assigned its benefits and responsibilities to IWH CREC Sdn Bhd – regarding the sale of 60% of the issued and paid-up capital of Bandar Malaysia Sdn Bhd, has lapsed.

“This is because, despite repeated extensions being granted, IWH CREC failes to meet the payment obligations outlined in the Conditions Precedent under the SSA. As a result, the SSA between the parties stands null and void with immediate effect,” said TRX City in a media statement released today.

It added that, given the significant appreciation in the value of the Bandar Malaysia land, TRX City’s sole shareholder, the Ministry of Finance will now be retaining 100% ownership of the site.

“TRX City will immediately be inviting expressions of interest for the role of master developer of Bandar Malaysia, with full ownership being preserved by the Ministry of Finance,” TRX City said.

The selection process is said to involve “very strict” criteria, including track record, speed of delivery, as well as financial capability for such large-scale development, to enhance all aspects of Bandar Malaysia, including its role as a business, transport, residential and tourism hub.

“The steps taken today will ensure that there is no detrimental impact on the long-term development of Bandar Malaysia and that, upon its completion, the site will serve the national interest to an even greater extent than before,” it said.

Bandar Malaysia, to be developed on the former Sungai Besi airbase site, is poised to be a catalyst for economic growth and national development. Among others, it will feature Kuala Lumpur Internet City, the hub for the new Digital Free Trade Zone. It will also be Malaysia’s transport nucleus, connecting the Kuala Lumpur-Singapore high-speed rail, MRT lines, KTM Komuter, Express Rail Link and 12 highways.