1MDB begins request for proposal process for Bandar Malaysia

KUALA LUMPUR (June 22): 1Malaysia Development Bhd (1MDB) said the request for proposal (RFP) process for its Bandar Malaysia development here has begun, with its wholly-owned subsidiary 1MDB Real Estate Sdn Bhd (1MDB RE) calling for development partners.

In a statement today, 1MDB RE, the project’s master developer, said the process will begin with a request for expressions of interest (EOI) advertised in local newspapers this week, and that it is seeking development partners to participate in the 486-acre project in Sungai Besi.

The closing date for submission of EOI is July 10, with CH Williams Talhar & Wong acting as the real estate adviser and managing the exercise.

“This follows the presentation of a rationalisation plan for 1MDB to Cabinet on May 29, 2015, and the company is pleased to have begun making progress towards its implementation,” said 1MDB RE.

Bandar Malaysia is a mixed-use urban development that is expected to serve as a catalyst for the transformation of Greater Kuala Lumpur, the statement read.

Strategically located within seven kilometres of Kuala Lumpur City Centre (KLCC), the development will serve as Kuala Lumpur’s gateway for the high speed rail-line to Singapore and become a central transport hub in the city via MRT lines 2 and 3, KTM Komuter, Express Rail Link (ERL), and future access to 12 major highways, it added.

1MDB president and group executive director Arul Kanda Kandasamy had on June 12 announced that the objective of the RFP process is to select qualified equity investors to partner in the overall development.

“Prior to the formal launch of the RFP process, which will be independently managed by CH Williams Talhar & Wong, we request suitably qualified equity investors to register their interest by entering into a confidentiality agreement with 1MDB in order to facilitate the sharing of preliminary information," he had said.

The Finance Ministry, which owns 100% of 1MDB, had also reportedly said on May 29 that it intends to turn Bandar Malaysia and Tun Razak Exchange (TRX) into separate companies.

The ministry had said Bandar Malaysia and TRX would have full autonomy and be accountable for their operations and financials.

The ministry had also said while options are being pursued with respect to the monetisation of Edra Energy, the ministry will remain a key shareholder in TRX and Bandar Malaysia, which will raise equity via third party investors. Proceeds raised will be used for capital expenditure and to reduce 1MDB’s debt.