Bank Negara says RM2b land purchase done at fair value

Although the transaction was concluded at RM703.44 per sq ft (psf), a source said the special-purpose vehicle (SPV) created by the MoF to undertake the transaction had initially wanted

KUALA LUMPUR: Bank Negara Malaysia says it had initiated the purchase of 55.79 acres of land from the government for RM2bil and it was conducted as an arms-length transaction.

The central bank said on Thursday the land, which is located contiguous to its Sasana Kijang complex, was transacted at fair value as determined by an independent private sector valuer.

“The transaction complied with all the governance requirements and relevant laws that govern the bank, in response to recent international and domestic media coverage on the matter.

“The bank shall continue to be transparent on this matter. In this respect, Bank Negara Malaysia has extended comprehensive information on the transaction to the Malaysian Anti-Corruption Commission (MACC) for its complete and independent review,” it said.

On Jan 4, Bank Negara said the transaction was the culmination of several months of discussions between the two parties.

To recap, it said the Sasana Kijang complex was equipped with conference and state of the art training facilities and houses international organisations such as the World Bank, South East Asian Central Banks Research and Training Centre (SEACEN) and the Alliance for Financial Inclusion (AFI). 

It is also near the new Asia School of Business (a collaboration with the Massachusetts Institute of Technology) complex and the financial industry’s Financial Industry Training Centre presently under construction.

Bank Negara had also stated then the land will be utilised for the relocation of the Global Islamic Finance University (INCEIF) and the International Shari’ah Research Academy for Islamic Finance (ISRA). 

The land will also be used for future development of education and training facilities that will focus on enhancing the technical capabilities of the talents in the financial services industry.

The entire combined area will be designated and integrated as a world-class Education Hub for Financial Services. 

The Hub is envisioned to be a focal point for international learning and research that will nurture a sustainable pool of local talents to support the development of the domestic financial industry.