Treasury head to chair KL flagship real estate projects

KUALA LUMPUR — Treasury secretary-general Mohd Irwan Serigar Abdullah has been appointed the chairman of two flagship real estate projects in Kuala Lumpur, Putrajaya announced yesterday, amid efforts to further transform the capital city.

Prime Minister Najib Razak said Mr Irwan’s appointment to lead both Bandar Malaysia and TRX City, or the Tun Razak Exchange, was due to the importance of the two projects towards making Kuala Lumpur one of the leading capitals in the world.

“He (Mr Irwan) will head a team with overall responsibility for these projects and the monetisation of 1MDB’s remaining real estate assets,” Mr Najib said in a statement yesterday. 1MDB refers to state investment firm 1Malaysia Development Berhad.

Mr Najib also said that, in order to ensure that the nation and the people benefit to the greatest extent possible, the Finance Ministry will retain 100 per cent ownership of Bandar Malaysia.

Prior to his appointment as chairman, Mr Irwan was already overseeing the projects, after 1MDB chief executive Arul Kanda was relieved of the role.

“Given the importance of this project, it is critical that Bandar Malaysia has the right leadership, the right partners and the right ownership structure to ensure that its full potential is realised — to serve the people and the national interest,” the Prime Minister added.

Mr Najib said that TRX City and Bandar Malaysia will shortly be announcing a request for proposal process, inviting expressions of interest for the role of master developer of Bandar Malaysia.

The Prime Minister also said the new selection process for the master developers for both Bandar Malaysia and TRX City would be strict, with emphasis on their track records and financial capability, among others.

“The highest possible value will be sought to ensure that the best deal for the taxpayer is obtained.”

The Bandar Malaysia development is planned on a 194ha tract within the old airport site in Sungai Besi.

The new development will also include a hub for a digital free-trade zone and a terminal for the High-Speed Rail connecting Kuala Lumpur and Singapore.

TRX City is planned as the next financial hub for Kuala Lumpur.

In December 2015, Iskandar Waterfront Holdings (IWH) — a real estate company owned by Malaysian tycoon Lim Kang Hoo — and China Railway Engineering Corporation (CREC) said they would buy a 60 per cent stake in Bandar Malaysia from 1MDB.

IWH held a 60 per cent stake in the joint venture, while the remaining 40 per cent in the joint venture was owned by CREC.

But the Finance Ministry terminated the RM7.41 billion (S$2.4 billion) deal early this month after the consortium failed to meet the payment deadline. IWH CREC refuted the allegation and said it has “fulfilled all the required payment obligations”.

The premier stated yesterday that the termination of the previous share sale agreement with IWH CREC would not be reversed.

“Contrary to some erroneous reports, the termination of the previous agreement is final, and it will not be reinstated,” he said.

It was earlier reported that Putrajaya was soliciting new bids for Bandar Malaysia project and previous consortium players, including IWH CREC, were also allowed to bid. AGENCIES