IWH CREC Sdn Bhd (ICSB) — the joint venture between Iskandar Waterfront Holdings (IWH) and China Railway Engineering Corp (CREC) that won the tender to acquire a 60 percent stake in the Bandar Malaysia project — insists that it has satisfied the payment obligations under the share sale agreement (SSA), reported the New Straits Times.
“To date, ICSB has fulfilled all the required payment obligations under the SSA. ICSB has sufficient financial resources and capabilities to ensure the smooth and successful execution and implementation of the development of Bandar Malaysia,” it said, adding that it reserves all of its rights in the agreement.
Nevertheless, The Star reported that some market watchers feel that IWH’s CEO Tan Sri Lim Kang Hoo would want to avoid a bitter legal battle with the TRX City, as most of his businesses depend on government approvals.
On Wednesday (3 May), the owner of the Bandar Malaysia land, TRX City Sdn Bhd, which is also a wholly-owned unit of the Ministry of Finance announced that it had scrapped the deal with ICSB, alleging that it had failed to meet payment obligations despite repeated extensions granted.
Originally, ICSB agreed to purchase a 60 percent stake in Bandar Malaysia for RM7.41 billion (US$1.7 billion) in December 2015. It also paid a 10 percent down payment or RM741 million upon signing of the deal.
Given the government’s intention of axing the contract with IWH CREC, other parties may emerge to take part in this sought-after project, said experts. These include a joint venture between Tan Sri Desmond Lim and a Qatari state-owned firm, a partnership between Malton and WCT Holdings, as well as an alliance between SP Setia and Malaysian Resources Corp Bhd (MRCB).
Located next to the Tun Razak Exchange (TRX), Bandar Malaysia is a massive prime land situated on the former site of the Kuala Lumpur Air Base in Sungai Besi. With a gross development value of about RM150 billion, this choice property will also house the terminus of the upcoming High Speed Rail (HSR) that will connect Kuala Lumpur with Singapore.
Among top developments to look out for around Klang Valley are:
Image sourced from The Star
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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