In a statement, the company said it was not the buyer in the transaction mentioned in a news report yesterday.

“KLCCP wishes to inform that we are not a party to this transaction. We are not the buyer as reported,” it said.

Bandar Malaysia, located in Sungai Besi just outside Kuala Lumpur, was once the site of the Royal Malaysian Air Force. 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, was set to purchase the 486-acre plot of land in two tranches.

The financial weekly said the sale was 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, which showed no non-current liabilities, but had current liabilities of RM993 million in borrowings and RM2.8 billion owing to its immediate holding company, TRX City.

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

The report by The Edge came days after theme park operator Sim Leisure Group Ltd announced in a filing with the Singapore Exchange that its agreement with BMSB had been terminated.

The Edge 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 would have to return to the Singaporean company its RM350,000 security deposit and RM1 million advance payment.