'KWAP inked TRX sales & purchase agreement'

Opposition MP Rafizi Ramli contested claims by Retirement Fund Incorporated (KWAP) that it has yet to finalise its controversial Tun Razak Exchange (TRX) land deal with 1MDB Real Estate (1MDB RE).

 

The PKR-Pandan representative today alleged KWAP had signed the sales and purchase agreement (SPA) to purchase a total of 900,000 sq ft of land in TRX.

 

He said he was informed that Second Finance Minister Ahmad Husni Hanadzlah had tabled in cabinet the development agreement inked with 1MDB RE.

 

The PKR secretary-general claimed to have the possession of the documents relating to the agreement.

 

"KWAP was among one of the (buyers who) signed the sales and purchase agreement," he said during the second reading debate of Retirement Fund (Amendment) Bill 2015.

 

He added that according to the agreement inked, 1MDB RE, the developer, would build KWAP's headquarters, and facilitate the office lots for rental upon completion.

 

"We want the minister to verify if this true," said Rafizi ( photo ).

 

"With its cash flow problem, how can we trust 1MDB RE as a developer?

 

"Upon completion, how can we guarantee it can rent out the office lots, and bring back a reasonable return to KWAP?" he asked.

 

New headquarters

On May 11, the Star reported that KWAP was planning to buy land in TRX at RM2,300 per square foot to build its new headquarters.

 

KWAP had confirmed that it is eyeing land in the Tun Razak Exchange zone owned by 1Malaysia Development Berhad, but stressed any decision would be based on commercial considerations.

 

KWAP has signed a non-binding Head of Terms with 1MDB RE last year, according to Azmar Talib, chief executive officer of 1MDB RE.

 

The recent controversial land deal between 1 Malaysia Development Berhad's TRX and Lembaga Tabung Haji has caused the latter to sell what it had purchased.

 

Tabung Haji had paid RM188.5 million for 1.56 acres of the 70-acre TRX land.

 

1MDB had purchased the entire 70 acres from the government for a mere RM194.1 million.

 

This translates to a purchase of RM2,773 per square foot by Tabung Haji, compared to 1MDB which bought the land for only RM64 per square foot from the government.

 

Deputy Finance Minister Chua Tee Yong who wrapped up at Dewan Rakyat, didn't respond on this issue.

 

Malaysiakini has written to KWAP and is awaiting its response.

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'KWAP inked TRX sales & purchase agreement'