Property deal of former 1MDB unit with China-Malaysia group lapses
KUALA LUMPUR May 3 A deal by a former unit of troubled state fund 1Malaysia Development Berhad (1MDB) to sell its stake in a property development project to a consortium including China's state-owned China Railway Engineering Corporation (CREC) has lapsed.
TRX City Sdn Berhad, a former 1MDB unit which was transferred to Malaysia's finance ministry, said in a statement that the 2015 deal to sell 60 percent of the issued and paid-up capital of Bandar Malaysia Sdn Bhd lapsed because the buyers "failed to meet the payment obligations".
"As a result, the share sale agreement between the parties stands null and void with immediate effect, the statement said.
TRX City’s sole shareholder, the Ministry of Finance, will now be retaining 100 percent ownership of the site, it said.
The company will now immediately invite expressions of interest for the role of master developer of Bandar Malaysia. (Reporting by Praveen Menon and Liz Lee; Editing by Muralikumar Anantharaman)