Bandar Malaysia’s revival in good hands with new owner, says S’pore daily
PETALING JAYA: The 196ha land acquisition by KLCC Holdings in Bandar Malaysia signals a major revival of the project, according to a report in The Straits Times.
Analysts were quoted as saying that KLCC Holdings shouldn't have any trouble raising funds through debt and equity as it has strong financial support from its main shareholder, Petronas, the Malaysian national oil company.
The local newspaper reported that the new landlord is renowned for developing large-scale property projects, including the prominent Kuala Lumpur City Centre, which is home to the iconic Petronas Twin Towers, and the administrative capital Putrajaya.
Siva Shanker, the CEO of the property division at Rahim & Co International, mentioned that KLCC Holdings possesses the necessary expertise to oversee large-scale projects.
"They succeeded, they have a proven history, and they can achieve it once more," he informed the daily.
Siva anticipates the completion of Bandar Malaysia project, currently managed by KLCC Holdings, to occur within the timeframe of 20 to 25 years.
"They need to bring this 486-acre development to life gradually, and it needs to be built in phases," he said.
The site is previously a Royal Malaysian Air Force base situated along Sungai Besi Road in Kuala Lumpur.
The initial plan was for Putrajaya Sentral to be the final stop of the cancelled Kuala Lumpur-Singapore High Speed Rail (HSR) project. The proposed development was to include a subterranean shopping mall, indoor theme parks, a financial hub and residential properties, with an estimated total value of RM150 billion.
The report mentioned that critics are demanding a clearer picture on the deal, which was finalised on October 4, and are wondering if the move was done to help Bandar Malaysia's owner, the finance ministry, out of financial difficulties.
The Edge berita menyatakan bahawa perjanjian itu dianggarkan bernilai sehinggaRM12 bilion.
In 2015, a joint venture between Iskandar Waterfront Holdings and its partner, China Railway Engineering Corp, agreed to acquire a 60% majority stake in Bandar Malaysia from 1MDB for RM7.41 billion.
The deal aimed to alleviate 1MDB's debt strain, but it fell through in 2017 as the consortium missed its payment deadlines.
KLCC Holdings has stated that Bandar Malaysia is designed to be an international business hub and a welcoming and inclusive city for its residents.
About 20.2 hectare of the Bandar Malaysia site would be designated as Malay reserved land.
The newspaper reported that the tenants currently operating entertainment and leisure businesses, such as glamping, on the land have been instructed by Bandar Malaysia management to vacate the area within the next six months.
