1MDB gets purchase proposals for its land lots in Penang, Pulau Indah

KUALA LUMPUR: This comes following efforts by the strategic development fund to monetise its various land parcels through joint ventures or outright sales as part of a strategic review to pare down its RM42bil debts as of March 2014. 

1MDB president and group executive director Arul Kanda (pic), in a statement on Tuesday said, “I am pleased to update that we have received significant expressions of interest in both land parcels.” 

“Accordingly, the company intends to appoint an independent real estate consultant to assist in reviewing the various proposals.  

“A further announcement providing an update on the progress will be made within the next two weeks,” he said.

1MDB has earlier announced its intention to monetise its land parcels in Air Itam and Pulau Indah through joint ventures or by outright sales under a strategic review announced on Feb 18. 

Subsequently, this was confirmed in the rationalisation plan presented to Cabinet on May 29, 2015, Arul said. 

To recap, the company paid RM1.38bil for some 1,000 acres in Air Itam in 2013. For the 310 acres in Pulau Indah that it bought from Tadmax Resources Bhd, it forked out  RM294.38mil. Based on Tadmax’s filing to the stock exchange in December 2014, the price was revised from the original RM317.33mil.

It had come under flak for overpaying for these acquisitions, a claim it refuted.