Bandar M'sia developer given more time to pay up due to Covid-19

The developer of the Bandar Malaysia project has been given a time extension to fulfil conditions for buying into the project.

Finance Minister Tengku Zafrul Abdul Aziz said TRX City Sdn Bhd (TRXC) had approved IWH-CREC Sdn Bhd (ICSB)’s request for the extension in light of the Covid-19 pandemic.

“As a result of the spread of Covid-19, TRXC has approved ICSB’s request to be given an extension of time to fulfil the conditions of sale from June 17 to Nov 5; and an extension of time on paying the deposit and advance from April 30 to Sept 15,” said Zafrul in a parliamentary reply to an oral question by Damansara MP Tony Pua.

ICSB is a joint venture between Malaysia's Iskandar Waterfront Holdings (IWH) and China’s China Railway Engineering Corporation (CREC).

As a condition for buying into the project, it was required to pay an advance of RM500 million and a deposit of RM741 million.

READ MORE: KiniGuide - How ICSB got back Bandar M’sia after botched Najib-era deal

Meanwhile, Zafrul said TRXC has received RM148.2 million so far from selling a 60 percent stake in the project. That amount is two percent of the RM6.45 billion value of the stake.

TRXC expects to receive nearly RM1.1 billion by Sept 15, while the remainder will be paid in installments up to 2023, he said.

In addition, ICSB is still in the process of fulfilling several other conditions of the sale.

The developer is still seeking approval from five China agencies involved in the regulation of foreign investments and currency exchange, as well as Bank Negara approval for the same.

The project is also pending the conclusion of ICSB’s due diligence checks on Bandar Malaysia, Zafrul said.

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