(File pix) 1Malaysia Development Bhd (1MDB) has inked a share sale and purchase agreement to sell a 60 per cent stake in Bandar Malaysia Sdn Bhd for RM7.41 billion to the IWH-CREC Sdn Bhd consortium. Pix by Zulfadhli Zulkifli

KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) will be selling its 60 per cent stake in Bandar Malaysia at RM7.41 billion to a consortium comprising Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC).

All parties have inked the sale and purchase agreement today after the latter valued 100 per cent of Bandar Malaysia land at RM12.35 billion, surpassing 1MDB's target at between RM11 billion to RM12 billion for the said land.

The consortium, known as IWH-CREC Sdn Bhd, is a 60:40 joint-venture between IWH and CREC.

1MDB President and Chief Executive Officer Arul Kanda Kandasamy said 1MDB will receive a 10 per cent deposit of RM741 million upon the execution of the Share Sale and Purchase Agreement with the completion of the transaction by the end of June 2016.

"Today's agreement marks the final major milestone in the 1MDB rationalisation plan as presented to the Cabinet on May 29, 2015, following the execution of the Binding Term Sheet with IPIC in June and the share sale and purchase agreement with CGN Group in November this year.

"We are delighted with the outcome of what has been a vigorous, highly competitive and value-enhancing process, which has exceeded our expectations.

"The Consortium is a highly attractive development partner for Bandar Malaysia and their bid was fully in line with the objectives outlined in the request-for-proposal (RFP)," said Arul in a press briefing here today.

IWH group executive vice chairman Tan Sri Lim Kang Hoo said: "The participation of IWH in this transaction aligns with our role as a key master developer in Malaysia. The capability of IWH to undertake such major projects is proven and creates an important link with the proposed terminus for the High Speed Rail project. We are proud to be selected."

Bandar Malaysia is the single largest development in the heart of Kuala Lumpur on the site of the Sungai Besi airport spanning across 486 acres in size with projected Gross Development Value (GDV) of RM150 billion.

It is deemed to the city's gateway for the high speed rail-line to Singapore and central city transport hub via MRT Lines 2 and 3, KTM Komuter, express rail link (ERL) and future access to major highway networks.