The development is located at the site of the Royal Malaysia Air Force base on Jalan Sungai Besi, and has an expected gross development value of about RM140bil.
TRX City is a wholly owned subsidiary of the Ministry of Finance Inc (MoF) while IWH-CREC is a 60:40 joint venture between Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corp (M) Sdn Bhd to develop Bandar Malaysia.
In a joint statement, the parties said IWH-CREC will acquire a 60% stake in Bandar Malaysia Sdn Bhd, the master developer of the project, from TRX City. The MoF will hold the remaining 40% equity.The consideration for the stake, previously reported at RM7.41bil, was anchored on Bandar Malaysia land valued at RM12.35bil, it said.
In the revived deal, the staggered payment term has been shortened from seven years to three years.
IWH-CREC will also pay an additional RM500mil as an advance payment in addition to the original deposit of RM741mil.
Finance Minister Lim Guan Eng said the revived deal is an integral part of fostering and cementing long-term bilateral relations between Malaysia and China.
"Under the new deal, Bandar Malaysia will be more Rakyat centric as opposed to previously under 1MDB where the new deal was driven by 1MDB Rationalization Plan aimed at paying off 1MDB's debt.
"We managed to double the number of affordable homes to 10,000 units. We will also create the 85-acre People's Park, which will be a combination of a single contiguous built park and several satellite parks," he said.
He added that there would be greater Bumiputera participation throughout the project implementation with priority given to the use of Malaysia-produced construction materials, technology and talent in the project.