Iskandar Waterfront, CREC no longer master developers of Bandar Malaysia

PETALING JAYA: Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corperation (M) Sdn Bhd (CREC) are no longer the master developers of the RM200 billion Bandar Malaysia project due to their failure to meet the payment obligations, according TRX City Sdn Bhd, a unit under the Ministry of Finance (MOF).

"This is because, despite repeated extensions being granted, IWH-CREC failed to meet the payment obligations outlined in the conditions precedent under the share sale agreement (SSA). As a result, the SSA between the parties stands null and void with immediate effect," TRX City said in a statement yesterday.

The acquisition of a 60% stake in Bandar Malaysia by IWH-CREC from 1Malaysia Development Bhd (1MDB) for RM7.41 billion was first announced in December 2015. This was part of 1MDB's efforts to pare down its debts through asset monetisation exercise.

Following the abortion of the deal, TRX City said it will be immediately inviting expressions of interest for the role of master developer of Bandar Malaysia.