KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) plans to appoint a property consultant to evaluate proposals relating to the company’s intention to monetise its Air Itam and Pulau Indah tracts in Penang and Selangor respectively.

1MDB president and group executive director Arul Kanda Kandasamy said in a statement yesterday that the strategic investment fund’s plan to monetise the tracts was going well.

“I am pleased to update that we have received significant expressions of interest in both land parcels. Accordingly, 1MDB intends to appoint an independent real estate consultant to assist in reviewing the various proposals. A further announcement providing an update on progress will be made within the next two weeks.

“As part of its strategic review, 1MDB had announced on Feb 18, 2015 its intention to monetise the company’s land parcels in Air Itam and Pulau Indah, through joint ventures or outright sales. Subsequently, this was confirmed in the rationalisation plan presented to [the] Cabinet on May 29, 2015,” Arul said.

News reports indicated 1MDB had bought the 94ha land in Air Itam for RM1.38 billion in 2013, reportedly intended for 9,999 units of affordable housing.

As for the Pulau Indah land, 1MDB acquired the estimated 154ha tract from Tadmax Resources Bhd for RM294.38 million. According to Tadmax’s announcement to the exchange in December 2014, the price was revised from the original RM317.33 million. 1MDB had acquired the leasehold tract via its wholly-owned subsidiary, Ivory Merge Sdn Bhd.

This article first appeared in The Edge Financial Daily, on July 1, 2015.