Part of its rationalisation plan is selling off its assets. If that can help settle or minimise 1MDB's debts, it sounds positive but what if it doesn't augur well in getting the investment entity out of the red?
This is the question many have been asking after 1MDB started the 'sell off' strategy amid sharp criticism over its heavy debts. And in the end, what's left?
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1Malaysia Development Bhd (1MDB) today announced that 60 per cent of its stake in Bandar Malaysia Sdn Bhd (BMSB) has been sold to Johor-based Iskandar Waterfront Holdings (IWH) and China Railway Engineering Corporation Sdn Bhd (CREC).
According to 1MDB chief Arul Kanda Kandasamy, Bandar Malaysia was valued at RM12.35 billion. The land sold, which represents a 60 % stake, was sold at RM7.41 billion.
“We have always stated that our target value for the land was RM11 to RM12 billion. With this sale, we have exceeded the target value,” said Arul, adding that as BMSB is a subsidiary of 1MDB, the latter will remain the owner of the remaining 40 per cent stake.
This recent development marks the “final major milestone in the 1MDB rationalisation plan”, which had also proved the attractiveness of the Bandar Malaysia development.
“As a result of this sale, the development will be 76 per cent owned by Malaysians, of which approximately 54 per cent will be owned by the Federal and Johor state governments,” added Arul who was speaking at the Bandar Malaysia signing ceremony in the Royale Chulan here today.
The 10 per cent deposit or RM741 million will be paid to 1MDB upon the execution of the Share Sale and Purchase Agreement. The balance is expected to be paid by June 2016.
The development is expected to transform the city in 15 to 20 years at a projected Gross Development Value of RM150 billion. The IWH-CREC Sdn Bhd consortium is a 60:40 joint venture between IWH and CREC.
In a related development, the Attorney-General's Chambers (AGC) has received documents pertaining to 1Malaysia Development Berhad (1MDB) investigation from its Thai counterpart, including the information former PetroSaudi International executive Xavier Andre Justo shared with Sarawak Report.
Inspector-General of Police Tan Sri Khalid Abu Bakar said the documents were handed over by the Thai attorney-general's chambers on Thursday.
"We are waiting for the AGC to go through the documents before passing them to us.
"The documents include the information Justo shared with Sarawak Report editor, Clare Rewcastle-Brown and also the transcript of the questioning between Malaysian police and him in Thailand recently," he said at Bukit Aman.
Khalid said the documents would be examined by police before the investigation is wrapped up.
This is the question many have been asking after 1MDB started the 'sell off' strategy amid sharp criticism over its heavy debts. And in the end, what's left?
According to 1MDB chief Arul Kanda Kandasamy, Bandar Malaysia was valued at RM12.35 billion. The land sold, which represents a 60 % stake, was sold at RM7.41 billion.
“We have always stated that our target value for the land was RM11 to RM12 billion. With this sale, we have exceeded the target value,” said Arul, adding that as BMSB is a subsidiary of 1MDB, the latter will remain the owner of the remaining 40 per cent stake.
This recent development marks the “final major milestone in the 1MDB rationalisation plan”, which had also proved the attractiveness of the Bandar Malaysia development.
“As a result of this sale, the development will be 76 per cent owned by Malaysians, of which approximately 54 per cent will be owned by the Federal and Johor state governments,” added Arul who was speaking at the Bandar Malaysia signing ceremony in the Royale Chulan here today.
The 10 per cent deposit or RM741 million will be paid to 1MDB upon the execution of the Share Sale and Purchase Agreement. The balance is expected to be paid by June 2016.
The development is expected to transform the city in 15 to 20 years at a projected Gross Development Value of RM150 billion. The IWH-CREC Sdn Bhd consortium is a 60:40 joint venture between IWH and CREC.
In a related development, the Attorney-General's Chambers (AGC) has received documents pertaining to 1Malaysia Development Berhad (1MDB) investigation from its Thai counterpart, including the information former PetroSaudi International executive Xavier Andre Justo shared with Sarawak Report.
Inspector-General of Police Tan Sri Khalid Abu Bakar said the documents were handed over by the Thai attorney-general's chambers on Thursday.
"We are waiting for the AGC to go through the documents before passing them to us.
"The documents include the information Justo shared with Sarawak Report editor, Clare Rewcastle-Brown and also the transcript of the questioning between Malaysian police and him in Thailand recently," he said at Bukit Aman.
Khalid said the documents would be examined by police before the investigation is wrapped up.