1MDB eyeing 'equity investors' for Bandar Malaysia

KUALA LUMPUR (June 12): 1Malaysia Development Bhd (1MDB) will launch a request for proposal (RFP) for Bandar Malaysia here in the next two weeks to select equity investors for the planned real estate project.

In a statement today, 1MDB president and group executive director Arul Kanda Kandasamy said 1MDB subsidiary Bandar Malaysia Sdn Bhd would undertake the exercise. Strategically located within seven kilometres from the Kuala Lumpur City Centre (KLCC), Bandar Malaysia will serve as a transport hub here, according to Arul Kanda.

He said Bandar Malaysia was a planned 198-ha (495 acre) mixed development that was expected to serve as a catalyst for the transformation of the Greater Kuala Lumpur enclave.

“Having generated considerable local and global interest, the objective of this RFP process is to select qualified equity investors to partner in the overall development.

“Prior to the formal launch of the RFP process, which will be independently managed by CH Williams Talhar & Wong, we request suitably qualified equity investors to register their interest by entering into a confidentiality agreement with 1MDB in order to facilitate the sharing of preliminary information," he said.

Arul Kanda said the RFP followed 1MDB's rationalisation plan, which was presented to the Malaysian Cabinet on May 29 this year.

On that day, the finance ministry said in a statement the government, which owns 100% of 1MDB, intended to turn Bandar Malaysia and Tun Razak Exchange (TRX) into standalone companies.

The finance ministry said Bandar Malaysia and TRX would have full autonomy and be accountable for their operations and financials.

"Whilst options are being pursued with respect to the monetisation of Edra Energy, the Ministry of Finance will remain a key shareholder in TRX and Bandar Malaysia, which will raise equity via third party investors. Proceeds raised will be used for capital expenditure and to reduce 1MDB’s debt," the finance ministry said.

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
  1. Najib's suit for 'wrongful prosecution' to gain political mileage, says Tommy Thomas
  2. 1MDB's board of directors was used to make illegal transactions seem legal, says ex-director
  3. Najib mulled taking action against The Edge over 1MDB exposés during UAE trip, ex-CFO testifies