Bandar Malaysia, TRX and other properties

  • Nation
  • Thursday, 17 May 2018

> 1MDB has three domestic loans totalling RM1.58bil, a term loan of US$150mil, a US$3bil debt programme and a sukuk issue of RM2.4bil to pay for its property assets.

> Some of the funds meant for project development were instead used to pay interest on loans taken by 1MDB.

Between 2010 and 2015, 1MDB acquired five property assets, namely the Tun Razak Exchange (TRX) and Bandar Malaysia, as well as land in Air Itam, Penang, Alor Gajah in Melaka and Pulau Indah in Selangor.

1MDB Real Estate Sdn Bhd, now known as TRX City Sdn Bhd, sold five plots of land to pay for infrastructure development in the project, but continued to face cashflow problems because proceeds amounting to RM1.095bil from the land sale went to parent company 1MDB.

Meanwhile, no money from the US$3bil debt issue was used for TRX’s development.

At Bandar Malaysia, RM288mil from a government allocation for the project was diverted to pay the interest on loans taken by 1MDB.

Related stories:

Contentious issues at 1MDB

Offshore investment in Cayman Islands

Investment in SRC Group

1MDB controversy started from day one

The PetroSaudi deal

Costly power sector entry