It’s a big thing. It was a widely shared news with everyone having their own interpretations. TRX City Sdn Bhd (TRX) has announced that IWC CREC has been ‘terminated’ from the Bandar Malaysia development. TRX is an indirect wholly-owned unit of the Finance Ministry. The reason cited for the termination was that IWH CREC had failed to meet payment obligations. We have heard of TRX’s side of the story. IWH CREC has shared that it has fulfilled all the required payment obligations and that TRX’s allegation is contrary to the conduct of the parties and the spirit of the Share Sale Agreement sealed in 2015. IWH CREC said, “We have sufficient financial resources and capabilities to ensure the smooth and successful execution and implementation of the development of Bandar Malaysia.” It added, “We have written to TRX informing its unilateral declaration that the Share Sale Agreement has lapsed is unacceptable. We reserve all its rights in this matter.”
Anyone who’s familiar with KL would have driven past Bandar Malaysia. It’s an urban redevelopment of the military airport in Sungai Besi. This is a piece of land adjacent to the Tun Razak Exchange. According to its site, this is its mission. “Bandar Malaysia will be a world-class, master-planned development of the highest standard. It will stimulate Malaysia’s future economic growth through key economic drivers and be an exemplary and sustainable mixed use community of the highest standards; where nature, culture and creativity are part of everyday life. Commerce, Community and Culture come together in the future of Greater KL. Planned around the principles of connectivity, sustainability and livability – Bandar Malaysia will elevate the city of KL to greater heights by introducing new ways for its people to live, work, recreate and learn.” (Sounds promising and I am a staunch supporter for any development that continues to elevate Malaysia’s status as a prominent property investment destination for the world)
My own opinion of the matter? Seriously, whether its IWC CREC or any other new master developer, the most important thing is that this is just a slight delay. Perhaps a slight delay for 4 weeks till everything clears up and some new names are mentioned by media? Yes, I have my own prediction on the potential new master developer for this too. I have no access to any special information, just my own thoughts of some possibilities. Yes, I love China’s involvement with Malaysia. However, it does not mean that anything and everything has to include China’s involvement, right? By the way, those affordable homes promised within Bandar Malaysia? That must be a priority too because I think it will be snapped up fast, especially by those working in the city centre. In theme time, just sit back and start viewing more units. I just read in the Facebook of a prominent property guru and author that the market may be staying flat for many more years to come. Happy following.
written on 5 May 2017
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