KUALA LUMPUR: TRX City Sdn Bhd, an indirect wholly-owned subsidiary of the Ministry of Finance (MoF), said the sale of its 60% interest in Bandar Malaysia Sdn Bhd has lapsed.
"Despite repeated extensions being granted, IWH CREC Sdn Bhd failed to meet the payment obligations outlined in the conditions precedent under the SSA. As a result, the share sale agreement between the parties stands null and void with immediate effect," it said in a statement today.
TRX City said it will immediately be inviting expressions of interest for the role of master developer of the Bandar Malaysia project in Sungai Besi here, with full ownership being preserved by the MoF.
IWH CREC is a 60:40 joint venture between Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC).
On Dec 31, 2015, TRX City had entered into a share sale agreement (SSA) with the consortium of IWH and CREC for the sale of the 60% stake.
The Sungai Besi land is currently owned by TRX City (formerly 1MDB Real Estate Sdn Bhd) and Bandar Malaysia Sdn Bhd. TRX City Sdn Bhd owns four plots while Bandar Malaysia Sdn Bhd owns 12 plots, which collectively make up 486 acres of the project.
"Looking ahead, given a significant appreciation in the value of the Bandar Malaysia land, MoF will now be retaining 100% ownership of the site to ensure that the Malaysian people benefit from its development in its entirety," said TRX City.
On the selection process for the master developer of Bandar Malaysia, TRX City said the criteria will include track record, speed of delivery and financial capability for such large scale development.
"This is to enhance all aspects of Bandar Malaysia, including its role as a business, transport, residential and tourism hub.
"The steps taken today will ensure that there is no detrimental impact on the long-term development of Bandar Malaysia and that, upon its completion, the site will serve the national interest to an even greater extent than before," it added.