Bandar Malaysia used to be home to the Royal Malaysian Air Force in Sungai Besi, just outside Kuala Lumpur. It is currently owned by TRX City Sdn Bhd, which also owns Tun Razak Exchange.

Quoting sources, The Edge reported that KLCCP, a wholly owned subsidiary of national oil company Petronas, will be paying for the 486-acre land in two tranches.

The financial weekly said the sale is vital for Bandar Malaysia Sdn Bhd (BMSB), which owns the tract, “to meet debt obligations”.

It cited BMSB’s audited balance sheet as of Dec 31, 2023, saying the company had zero non-current liabilities, but had current liabilities of RM993 million in borrowings and RM2.8 billion in amount owing to its immediate holding company, TRX City.

The report said the land will be developed in several phases, and that the current tenants site would not be affected as development will take five to six decades to complete.

The report by The Edge, which will be published digitally tomorrow, comes days after theme park operator Sim Leisure Group Ltd announced in its filing with Singapore Exchange that its agreement with BMSB had been terminated.

The Edge had reported that Sim Leisure Group, via Sim Leisure Escape Sdn Bhd, had entered into an agreement with BMSB last year to develop, construct, operate and maintain Escape Park@KL Base.

The theme park would take up 75 acres of Bandar Malaysia on a 15-year lease with an automatic extension of another 15 years, according to the company’s announcement on the Singapore Exchange.

It said BMSB must pay the Singaporean company back its RM350,000 security deposit and RM1 million in advance payment.