For sale: 1MDB’s land in Pulau Indah

KUALA LUMPUR (May 18):  A 318-acre (13.85 million sq ft) tract of land in Pulau Indah in Klang, Selangor which belongs to 1Malaysia Development Bhd (1MDB) is up for sale, according to a report by The Edge Malaysia.

It has been reported that the land is designated as a free trade zone (FTZ) and sources have told the weekly that the government “may be able to get as much as RM416 million” for the land.

The business publication also reported that the bidding exercise for the land will be conducted in two stages.

Stage 1 is an expression of interest (EOI) “whereby interested parties can register their interest”. The deadline for this stage 1 is noon of June 21. Stage 2 will involve parties shortlisted in Stage 1 being invited to submit their tenders.

The same sources revealed to the weekly that a reserve price has not been set “but the government is looking at getting more than RM30 psf for the tract”.  This works out to RM415.56 million.

The land (with an industrial title) has been given FTZ status and will be granted a fresh 99-year lease. The current lease expires in 2096.

The Edge also reported that CBRE | WTW has been appointed “the exclusive marketing agent for the sale”.

CBRE | WTW managing director Foo Gee Jen confirmed with the weekly “the appointment of his firm but declines to disclose further details”.