According to 1MDB chief Arul Kanda Kandasamy, Bandar Malaysia was valued at RM12.35 billion. The land sold, which represents a 60 % stake, was sold at RM7.41 billion.
“We have always stated that our target value for the land was RM11 to RM12 billion. With this sale, we have exceeded the target value,” said Arul, adding that as BMSB is a subsidiary of 1MDB, the latter will remain the owner of the remaining 40 per cent stake.
This recent development marks the “final major milestone in the 1MDB rationalisation plan”, which had also proved the attractiveness of the Bandar Malaysia development.
“As a result of this sale, the development will be 76 per cent owned by Malaysians, of which approximately 54 per cent will be owned by the Federal and Johor state governments,” added Arul who was speaking at the Bandar Malaysia signing ceremony in the Royale Chulan here today.
The 10 per cent deposit or RM741 million will be paid to 1MDB upon the execution of the Share Sale and Purchase Agreement. The balance is expected to be paid by June 2016.
The development is expected to transform the city in 15 to 20 years at a projected Gross Development Value of RM150 billion.
The IWH-CREC Sdn Bhd consortium is a 60:40 joint venture between IWH and CREC.