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Friday, 5 May 2017

(The Edge) Bandar Malaysia agreement with IWH CREC lapses

The master developer of Bandar Malaysia, TRX City Sdn Bhd, announced on May 3 that the share sale agreement (SSA) with Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC) – who on July 21, 2016 had assigned its benefits and responsibilities to IWH CREC Sdn Bhd – regarding the sale of 60% of the issued and paid-up capital of Bandar Malaysia Sdn Bhd, has lapsed.

According to a statement by TRX City, despite repeated extensions being granted, IWH CREC had failed to meet the payment obligations outlined in the Conditions Precedent under the SSA. “As a result, the SSA between the parties stands null and void with immediate effect,” said TRX City.

“TRX City will immediately be inviting expressions of interest for the role of master developer of Bandar Malaysia, with full ownership being preserved by the Ministry of Finance,” TRX City added.

In an immediate response, IWH CREC said it was concerned with the content of the termination notice and the press release issued by TRX City, which, “given the factual matrix, does not fully and accurately reflect the circumstances and conduct of the parties in this matter”.

“IWH CREC takes this matter very seriously and is at present reviewing the content of the termination notice and press release with its advisors and legal counsel,” it added.