KUALA LUMPUR (May 6): The value of the Bandar Malaysia tract within the old airport site in Sungai Besi here may have topped RM20 billion in anticipation of the mass rapid transit (MRT) and Kuala Lumpur-Singapore High-Speed Rail projects, The Edge Malaysia business and investment weekly reported.

The Edge Malaysia, in its latest May 8 - 14 issue, quoted an executive familiar with the planned Bandar Malaysia property project as saying Bandar Malaysia's profile had also improved after the Malaysian Government took over the project from 1Malaysia Development Bhd (1MDB).  

“When Bandar Malaysia was tendered back in 2015, it attracted over 40 bids. Today, the land is even more attractive. It does not have the 1MDB stigma. Furthermore, visibility has improved for turnkey projects like the high-speed rail and MRT,” he said.

Bandar Malaysia is the proposed terminus in Malaysia for the Kuala Lumpur-Singapore High-Speed Rail.   

The Edge Malaysia reported that Bandar Malaysia would be developed within a 486 acre or 21.17 million sq ft tract. The executive indicated that as at December 2015, the gross land value was estimated at RM12.35 billion or RM583.37 psf.

Today, he argued that the land should be worth between RM800 and RM1,000 psf, which would value the tract at above RM20 billion.

Bandar Malaysia is in the spotlight after Malaysian Government-owned TRX City Sdn Bhd alleged last Wednesday (May 3) its planned sale of a 60% stake in Bandar Malaysia Sdn Bhd to IWH CREC Sdn Bhd  was "null and void with immediate effect." 

The Government via the Finance Ministry owns TRX, a former unit under 1MDB. The Government also owns 100% of 1MDB. 

Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corp (M) Sdn Bhd (CREC) jointly own IWH CREC. TRX alleged that "IWH CREC failed to meet the payment obligations" under the share sale agreement.

In response, IWH CREC said yesterday TRX's allegation was "unacceptable" because IWH CREC had fulfilled "all the required payment obligation" under the agreement dated December 31 2015.

For a better understanding on Bandar Malaysia, kindly pick up and read the latest issue of The Edge Malaysia.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.