KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) said the request for proposal (RFP) process for its Bandar Malaysia development has begun, with its wholly-owned subsidiary 1MDB Real Estate Sdn Bhd (1MDB RE) calling for development partners.

In a statement yesterday, 1MDB RE, the project’s master developer, said the process will begin with a request for expressions of interest (EOI) advertised in local newspapers this week, and that it is seeking development partners to participate in the 486-acre (196.67ha) project in Sungai Besi. The closing date for submission of EOI is July 10, 2015, with CH Williams Talhar and Wong acting as the real estate adviser and managing the exercise.

“This follows the presentation of a rationalisation plan for 1MDB to the Cabinet on May 29, 2015 and the company is pleased to have begun making progress towards its implementation,” said 1MDB RE.

Bandar Malaysia is a mixed-use urban development that is expected to serve as a catalyst for the transformation of Greater Kuala Lumpur, the statement read. Located within 7km of the Kuala Lumpur City Centre, the development will serve as Kuala Lumpur’s gateway to the high-speed rail line to Singapore and become a central transport hub in the city via mass rapid transit lines 2 and 3, KTM Komuter, Express Rail Link, and future access to 12 major highways, it said.

1MDB president and group executive director Arul Kanda Kandasamy had on June 12 announced that the objective of the 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 and 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.

The Finance Ministry, which owns 100% of 1MDB, had also reportedly said on May 29 that it intends to turn Bandar Malaysia and Tun Razak Exchange (TRX) into separate companies. The ministry had also said while options are being pursued with respect to the monetisation of Edra Global Energy Bhd, the ministry 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.

This article first appeared in The Edge Financial Daily, on June 23, 2015.