KLCC Holdings to develop 486 acres of land acquired from Bandar Malaysia

• “The development is envisioned as an international business hub and a liveable and inclusive city for the community.”

KUALA LUMPUR (Dec 23): KLCC (Holdings) Sdn Bhd, a unit of national oil and gas company Petroliam Nasional Bhd (Petronas), on Monday said that it has acquired 486 acres of Bandar Malaysia land for an undisclosed price.

A sale-and-purchase agreement for the close to 200-hectare land, the site of the former Royal Malaysian Air Force base on Jalan Sungai Besi, Kuala Lumpur, was signed with Bandar Malaysia Sdn Bhd and Bandar Malaysia Land Sdn Bhd on Oct 4, the company said in a statement. The transaction had not been previously disclosed.

The statement also did not provide other financial information.

“KLCCH will undertake the development based on commercial viability over a long-term period,” the company said. “The development is envisioned as an international business hub and a liveable and inclusive city for the community.”

The statement follows a report by The Edge Malaysia weekly in its Dec 23-29, 2024 issue that Bandar Malaysia land is being taken over by one of Petronas’ companies in a deal estimated to be worth as much as RM12 billion.

KLCC Property Holdings Bhd, part of the KLCC Stapled Group (KL:KLCC) and 65%-owned by KLCCH, announced to Bursa Malaysia on Monday that it was not the buyer of the Bandar Malaysia land.

KLCCH develops and manages real estate properties in the Kuala Lumpur City Centre and Putrajaya. It is the master developer of the 100-acre prime land in the commercial hub of Kuala Lumpur, which is home to the 452-metre Petronas Twin Towers, the world’s tallest twin towers.

Escape theme park scrapped

Separately, Bandar Malaysia has also scrapped the development of an Escape theme park, according to Sim Leisure Group Ltd, a Singapore-listed theme park developer and operator. Sim Leisure announced on Dec 19 that it had received a notice of termination over the project.

“The company is consulting with its legal counsels to ensure all rights under the agreement are preserved, including but not limited to the compensation entitlement due to the owner's premature termination of the agreement, and the necessary legal aspects and steps,” Sim Leisure said.

Sim Leisure via its subsidiary Sim Leisure Escape Sdn Bhd signed an agreement with Bandar Malaysia Sdn Bhd in November 2023 to build and operate a 75-acre Escape theme park in Bandar Malaysia.

Sim Leisure Group owns and operates the Escape outdoor adventure park in Penang, the Escape Challenge indoor park at Paradigm Mall in Petaling Jaya, and KidZania Kuala Lumpur. 

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