It quoted analysts as saying that KLCC Holdings should have no issues raising funds through both debt and equity as it will have sound financial backing from its main shareholder, Petronas, the national oil company.
The newspaper said the new owner has a good track record for large-scale property development such as Kuala Lumpur City Centre, where the iconic Twin Towers are located, and administrative capital Putrajaya.
Siva Shanker, chief executive of the estate agency arm of Rahim & Co International, said KLCC Holdings has the requisite experience to manage huge developments.
“They did it successfully, they have a track record, and they can do it again,” he told the daily.
Siva believed KLCC Holdings will take about 20 to 25 years to complete the development at Bandar Malaysia.
“They need to breathe life into this entire 486-acre development slowly. It will be structured slowly,” he said.
The site was formerly an air force base along Jalan Sungai Besi in Kuala Lumpur.
It was earlier intended to be the terminus for the now-scrapped Kuala Lumpur-Singapore High Speed Rail (HSR). It was to house a subterranean shopping mall, indoor theme parks, a financial centre and residential units, with a gross development value of RM150 billion.
However, the report said detractors were calling for greater transparency surrounding the deal, which was inked on Oct 4, questioning whether the move was a bailout for Bandar Malaysia’s owner, the finance ministry.
The Edge had reported that the deal was estimated to be worth as much as RM12 billion.
In 2015, a consortium comprising Iskandar Waterfront Holdings and its partner, China Railway Engineering Corp, agreed to buy a 60% stake in Bandar Malaysia from 1MDB for RM7.41 billion.
The deal was expected to ease the debt burden of 1MDB, but it lapsed in 2017 after the consortium failed to meet its payment obligations.
KLCC Holdings has said that Bandar Malaysia was envisioned as an international business hub and a liveable and inclusive city for the community.
About 20.2ha of the Bandar Malaysia site would be gazetted as Malay reserve land.
The newspaper said tenants presently occupying the land for entertainment and recreation businesses, including glamping, have been told by Bandar Malaysia management to vacate the premises within six months.