Following reports that the IWH-CREC consortium may be allowed back in Bandar Malaysia, Iskandar Waterfront City Bhd (IWCity) saw its shares hit limit-up on the back of renewed interest, reported The Edge.
IWCity rose 29.9 percent at RM2.13 as at 4.45pm, with 200.2 million shares transacted.
The stock took a sharp downfall after TRX City Sdn Bhd announced on 3 May that the agreement signed with IWH-CREC in December 2015 had lapsed due to the buyers’ failure to meet payment obligations.
IWH-CREC is a joint venture (JV) between Iskandar Waterfront Holdings Sdn Bhd (IWH), an associate company of IWCity, and China Railway Engineering Corp (M) Sdn Bhd (CREC). IWH holds a 60 percent stake in the JV, while the remaining 40 percent is owned by CREC.
IWH-CREC received the RM741 million refund, representing the deposit it paid to acquire a 60 percent equity stake within Bandar Malaysia Sdn Bhd for RM7.41 billion.
But while the refund signalled the official termination of the sale, Prime Minister Datuk Seri Najib Razak reportedly said following a meeting with China President Xi Jinping that he is still open to reconsidering IWH-CREC as well as a change in Bandar Malaysia’s equity structure that could see the involvement of more than one Chinese firms.
Notably, China’s biggest property developer Dalian Wanda Group has reportedly expressed interest in participating in the Bandar Malaysia development.
Image sourced from IW City
Among developments to look out for in Johor are:
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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