Apart from power assets, the other main operational assets of 1Malaysia Development Bhd are in real estate sector, its babies being the Tun Razak Exchange (TRX) and the Bandar Malaysia developments.

Both are multi-billion ringgit developments with a combined gross development value of RM47 billion.

NONE Tun Razak Exchange, envisioned to be Kuala Lumpur’s financial district with a gross development value of RM27 billion, is 28ha of land nestled between two of KL’s main roads, Jalan Sultan Ismail and Jalan Tun Razak.

Bandar Malaysia - a residential project - will be built on the former Sungei Besi military airport, a 160ha piece of land long-eyed by developers due to its proximity to the city centre.

The gross development value for the project is about RM20 billion.

But the combination of these prime locations and 1MBD’s rather unconventional approach to real estate development has attracted some criticism.

As a fully-owned government company, 1MDB has been said to have obtained the lands for TRX and Bandar Malaysia at a significant discount.

Having purchased it about RM1 billion, 1MDB is alleged to have gotten the Bandar Malaysia land at about a third of its market price.

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