Jueves, 20 Setiembre, 2018

Malaysian-Chinese consortium in 1MDB property deal says fulfilled payment obligations

S$2.3b property deal to cut 1MDB debt falls through Asia S$2.3b property deal to cut 1MDB debt falls through Reuters file
Cris De Lacerda | 06 May, 2017, 02:46

China Railway Engineering Corp. and a local Malaysian partner had agreed in December 2015 to take a 60% stake in Bandar Malaysia, a major residential and commercial real-estate project in Kuala Lumpur that originally was being developed by 1Malaysia Development Bhd., a Malaysian state fund.

In December 2015, IWH and CREC agreed to purchase a 60 per cent stake in Bandar Malaysia, with the remaining 40 per cent held by TRX City - a former subsidiary of 1Malaysia Development Berhad (1MDB) before it was placed under the Ministry of Finance a year ago as part of 1MDB's debt rationalisation plan.

IWH and CREC said in a joint statement that the termination notice by TRX "does not fully and accurately reflect the circumstances and conduct of the parties in this matter".

Earlier this week, TRX City Sdn Bhd - a former unit of state fund 1MDB now owned by the finance ministry - said the deal to sell 60% of Bandar Malaysia had lapsed because the consortium failed to meet payment obligations.

In a statement issued by 1MDB, which used to own TRX City, on 5 January 2016, it said the ICSB consortium was to pay a 10% deposit, amounting to RM741m. "What is important is for the Government to show the people that Bandar Malaysia will be an economic catalyst - not only for Kuala Lumpur but the whole country", he added.

Along with other developments, it will house the terminal for the 350km rail link to Singapore, which was slated for completion in 2026.

Workmen are pictured on site at the 1MDB flagship Tun Razak Exchange development in Kuala Lumpur on March 1, 2015.

The Chinese government's information office did not immediately respond to a request for comment, the newspaper said.

Meanwhile shares of construction firm Ekovest - a separate company controlled by Tan Sri Lim plummeted 18 percent.

TRX City said it is now looking for a new investor in Bandar Malaysia, where it said land values have "significantly appreciated".

"We were informed by the Prime Minister during the Cabinet meeting (on Wednesday) that a new company will be invited to be the master developer for Bandar Malaysia", Datuk Seri Abdul Rahman Dahlan, Minister in the Prime Minister's Department in charge of Economic Affairs announced, The Star reports.

Others were less bullish. The move is a setback for Malaysian leader Najib Razak. China General Nuclear Power paid almost 10 billion ringgit in 2015 for 1MDB's energy assets in Malaysia and four other countries.