Pada 31 Disember 2015, 1mdb mengumumkan penjualan 60 peratus ekuiti Bandar Malaysia Sdn Bhd (BMSB) kepada Konsortium Iskandar Waterfront Holdings Sdn Bhd (IWH) dan China Railway Engineering Corporation (M) Sdn Bhd (CREC). Ia dilaksanakan melalui Perjanjian Jual Beli Saham.
Konsortium yang dikenali sebagai IWH-CREC Sdn Bhd adalah hasil usahasama 60:40 antara IWH DAN CREC. Konsortium IWH-CREC telah menilai penuh 100 peratus tanah Bandar Malaysia pada RM12.35 bilion. Nilai bersamaan 60 peratus tanah adalah RM7.41 bilion.
1MDB akan menerima deposit 10 peratus atau RM741 juta apabila melaksanakan Perjanjian Jual Beli Saham. Urusniaga ini dijangka lengkap menjelang hujung Jun 2016.
Perjanjian penjualan tanah 1MDB dengan konsortium itu hari ini menandakan kejayaan besar terakhir dalam rancangan rasionalisasi syarikat itu.
Perjanjian Jual Beli Saham adalah hasil dari Permintaan untuk Saranan (RFP) yang dilancarkan pada Jun lalu oleh penasihat urus niaga , CH Williams Talhar and Wong (WTW).
WTW menerima 40 penyertaan daripada pelabur dalam dan luar negara termasuk dari Singapura, China, Jepun, Korea dan Australia.
Empat pembida telah disenarai pendek pada September lalu dengan dua tawaran akhir, terikat dan diterima pembiayaan pada 9 November 2015.
Bandar Malaysia yang akan dibangunkan dalam tempoh 15 hingga 25 tahun pada unjuran Nilai Pembangunan Kasar sebanyak RM150 bilion dibina sebagai mercu tanda antarabangsa Malaysia yang baru apabila siap kelak.
Ia akan menjadi pembangunan bandar bercampur yang dijangka memangkin transformasi "Greater Kuala Lumpur".
Perjanjian penjualan tanah 1MDB dengan konsortium itu turut menandakan kejayaan besar terakhir dalam rancangan rasionalisasi syarikat itu seperti yang dikemukakan kepada Kabinet pada 29 Mei, 2015.
Bagaimana pun kita merancang, rancangan Allah mengatasi segalanya
Cita-cita untuk membangunkan hartanah terbesar Malaysia serta pada masa yang sama mengurangkan hutang 1mdb gagal dilaksanakan.
Hari ini, Putrajaya mengumumkan yang ia sedang mencari pelabur baru untuk Bandar Malaysia selepas konsortium IWH-CREC Sdn Bhd gagal membayar RM7.42 bilion untuk pegangan saham 60 peratus walaupun beberapa kali penangguhan diberikan sejak Disember 2015.
Penangguhan terakhir tamat pada Ahad, 30 April, kata TRX City Sdn Bhd di Putrajaya, yang merupakan syarikat Kementerian Kewangan (MoF) yang mengambil alih Bandar Malaysia daripada 1mdb.
Difahamkan yang pembatalan perjanjian itu kini membolehkan Putrajaya mencari pihak lain yang berminat menggunakan harga semasa berbanding harga 2015, dan bergerak ke arah pembayaran sepenuhnya hutang 1MDB dan melindungi kepentingan negara melalui pemilikan penuh hartanah itu.
”Walaupun perjanjian itu melalui penangguhan berulang kali, IWH CREC tidak mampu memenuhi tanggung jawab sepertimana digariskan dalam Persetujuan Keadaan menerusi SSA mengikut tempoh masa yang ditetapkan. Kerana itu, perjanjian perkongsian jualan antara kedua-dua belah pihak adalah terbatal dan tidak sah serta merta,” kata TRX City dalam satu kenyataan media.
TRX City menambah yang pemilik tunggal sahamnya iaitu Kementerian Kewangan akan mengekalkan 100% pemilikan tapak Bandar Malaysia dan akan menjemput pembida lain untuk menjadi pemaju utama yang baru.
“Proses pemilihan akan melibatkan kriteria yang sangat ketat, termasuklah rekod kerja, masa penyampaian dan kemampuan kewangan untuk pembangunan projek mega. Ini bagi memperhebatkan semua aspek Bandar Malaysia, termasuklah peranannya dalam perniagaan, pengangkutan, kediaman penduduk dan pusat pelancongan.
”Langkah yang diambil hari ini akan memastikan tiada kesan buruk berterusan dalam jangka masa panjang pembangunan Bandar Malaysia dan sebaik sahaja ia disiapkan, projek itu akan memberikan manfaat terbaik kepada negara, lebih baik berbanding sebelumnya,” tambahnya.
Menurut kenyataan itu, Bandar Malaysia akan menjadi pemangkin kepada pertumbuhan ekonomi dan pembangunan negara.
Dengan lokasi utama strategik akan menawarkan pelbagai peluang perniagaan, pelaburan dan pekerjaan, termasuklah Kuala Lumpur Internet City, iaitu Kawasan Bebas Perdagangan Digital terbaru.
Dikhabarkan juga yang Bandar Malaysia akan menjadi titik tumpuan pengangkutan Malaysia, menghubungkan kereta kelajuan tinggi Kuala Lumpur-Singapura, landasan MRT, KTM Komuter, Express Rail Link dan 12 lebuh raya.
Iskandar Waterfront Holdings Bhd (IWH) dan China Railway Engineering Corp Sdn Bhd menanda tangani perjanjian pada 31 Disember, 2015 dengan pemilik projek iaitu 1mdb dan sepatutnya menyiapkannya pada Jun 2016 sebagai rancangan tahap ketiga dan terakhir proses rasionalisasi untuk menyelesaikan hutang tertunggak 1mdb.
1mdb memulakan tiga peringkat pelan rasionalisasi bermula Jun 2015, bermula dengan perjanjian pertukaran pemilikan dengan International Petroleum Investment Company (IPIC) berpangkalan di Abu Dhabi dan penjualan aset tenaga Edra Global Energy Bhd kepada syarikat China pada November 2015.
Perjanjian dengan IPC berdepan beberapa masalah tetapi di selesaikan minggu lepas di London melalui proses arbitari.
Kedua-dua perjanjian pada 2015 ialah untuk memansuhkan hutang 1mdb bernilai RM24 bilion walaupun ramai pengkritik berhujah yang aset utama negara sedang dijual kepada pihak asing sedangkan Kementerian Kewangan yang memiliki 1MDB sepatutnya berurusan dengan syarikat tempatan.
Pengerusi 1mdb, Tan Sri Dr Mohd Irwan Serigar Abdullah, mengesahkan projek Bandar Malaysia masih berlangsung seperti biasa ketika berita melaporkan perjanjian jualan saham (SSA) mengenainya dibatalkan.
Menurut TRX City, Kementerian Kewangan akan terus mengekalkan pegangan 100 peratus hak dalam Bandar Malaysia dan akan memastikan pembangunan aset harta tanah itu benar-benar memberi faedah kepada rakyat Malaysia.
Menteri di Jabatan Perdana Menteri Datuk Seri Abdul Rahman Dahlan hari ini berkata pembatalan SSA Bandar Malaysia tidak menggugat rancangan jangka panjang kerajaan untuk merasionalisasikan 1mdb dan membangun kan projek berkenaan.
Kerajaan, katanya, akan mempelawa syarikat-syarikat tempatan dan luar negara yang mempunyai pelan lebih menarik serta komprehensif bagi menjadi pemaju utama projek pembangunan Bandar Malaysia
APA KATA WALL STREET JOURNAL
Kerajaan China dikatakan enggan meluluskan perjanjian firma milik negara itu dengan Iskandar Waterfront Holdings (IWH) yang berpangkalan di Johor Iskandar Waterfront Holdings (IWH) untuk mengambil alih 60 peratus kepentingan dalam Bandar Malaysia, lapor Wall Street Journal.
Akhbar itu menyifatkan kegagalan perjanjian RM7.41 bilion berkenaan sebagai satu tamparan kepada Perdana Menteri Datuk Seri Najib Razak, yang semasa perutusan Tahun Baru berkata “isu 1MDB yang saya janjikan pada rakyat tempoh enam bulan sudah pun nampak penyelesaian,"
WSJ melaporkan 1MDB masih belum mengemukakan penyata kewangan bagi tahun 2015 atau 2016, jadi keadaan kewangan semasanya adalah tidak jelas.
“Namun, kegagalan usaha sama itu mungkin menambah tekanan kepada Najib, yang juga menteri kewangan, untuk mencari cara lain membayar hutang 1MDB," kata laporan itu.
WSJ juga mendakwa melihat dokumen dalaman daripada kementerian kewangan Malaysia, yang kononnya menyatakan bahawa sebab utama kegagalan usaha sama itu adalah bahawa kerajaan China enggan memberikan lampu hijau kepada China Railway Engineering Corporation (CERC) untuk membuat pelaburan.
Akhbar tersebut juga mendakwa bahawa "sumber yang rapat dengan perkara itu" telah mengesahkan perkara berkenaan.
"Dokumen Kementerian Kewangan mengatakan bahawa konsortium itu diberikan 12 lanjutan, dengan yang terakhir luput pada 30 April ..," katanya.
WSJ berkata pejabat perdana menteri dan 1MDB tidak bertindak balas terhadap permintaan mereka untuk mendapatkan ulasan, manakala pejabat maklumat kerajaan China juga tidak menjawab.
Najib: 1MDB is now free of short-term debts, bank debts
KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) has cleared all of its short-term debts and bank debts amounting over RM3bil over the last two years, said Prime Minister Datuk Seri Najib Tun Razak (pic).
"At the moment, 1MDB has no outstanding short or long-term debts," said Najib, who is also Finance Minister, in a written reply in Parliament Thursday.
He was responding to a question from Er Teck Hwa (DAP-Bakri), who asked the Finance Ministry to reveal 1MDB's debts.
Najib said the debts, including RM950mil in a standby credit facility from the Federal Government, were fully paid on March 30 last year.
He said 1MDB also made full settlement amounting to RM229.5mil for a revolving credit facility to Affin Bank on Nov 23, 2015.
"A total of RM2bil was paid to Marstan Investments N.V. for a term loan facility on April 8 last year," he said.
Najib added that a total of RM662.85mil (US$150mil) for a term financing facility from Exim Bank was fully paid on April 15 last year.
He said the ministry had raised cash amounting to RM10.97bil through the sale of assets from Edra Global Energy Bhd, equities in Bandar Malaysia Sdn Bhd and land in the Tun Razak Exchange project.
"As the rationalisation of 1MDB is still ongoing, no new assets were acquired locally or internationally in 2015 and 2016."
APA KATA TONY PUA DALAM ROKETKINI
KUALA LUMPUR, 4 MEI: Perjanjian usahasama RM7.41 bilion bagi memiliki 60 peratus kepentingan Bandar Malaysia antara kondortium Iskandar Waterfront Holdings (IWH) dan China Railway Engineering Cooperation (CREC) akhirnya tidak menjadi kenyataan.
Ia berikutan perjanjian Jualan Saham yang dimeterai pada 31 Disember 2015 oleh TRX City Sdn Bhd dengan konsortium itu kini telah luput walaupun tempoh lanjutan diberikan.
Namun, yang menjadi persoalan saat ini ialah, adakah 1MDB akan memulangkan semula deposit sebanyak RM741 juta yang dibayar syarikat consortium IWH-CREC soal Ahli Parlimen Petaling Jaya Utara, Tony Pua Kiam Wee.
Menurut Tony, pengumuman TRX City Sdn Bhd semalam itu tidak mengejutkan.
Beliau malah turut mempersoalkan alasan di sebalik cadangan penjualan ekuiti itu kepada sebuah konsortium dengan jumlah aset bersih sebanyak hampir RM3.8 bilion atau kurang daripada separuh nilai urus niaga berkenaan.
“Bagi tahun kewangan yang berakhir pada 31 Disember 2015, keuntungan bersih syarikat itu sebelum cukai hanya RM170.4 juta.
“Walaupun IWH jelas cuba melakukan lebih daripada kemampuannya, 1MDB dengan bangga mengumumkan pada 31 Disember 2015 yang perjanjian penjualan IWH-Bandar Malaysia menandakan peristiwa penting terakhir dalam pelan rasionalisasi 1MDB seperti yang dikemukakan kepada kabinet Malaysia pada 29 Mei 2015,” katanya.
Perkara ini juga pernah dibangkitkan dalam soalan tambahan di Parlimen mengenai November tahun lalu dan April tahun ini.
Namun, jawapan parlimen yang diberikan hanya menyatakan bahawa konsortium IWH akan membayar faedah 6 peratus ke atas pembayaran yang belum dijelaskan sehingga jumlah berkenaan dibayar sepenuhnya pada 2023.
Rentetan dari kegagalan ini, beliau berkata Kementerian Kewangan terpaksa menangung faedah sukuk RM2.4 bilion yang diambil oleh 1MDB bagi projek Bandar Malaysia. -Roketkini.com
Bandar Malaysia: Is there still a need to rush?
The news that the Malaysian Ministry of Finance has called off the sales of 60% interest in Bandar Malaysia due to non-payment came as a surprise to many.
MOF had said that the buyer, IWH CREC Sdn Bhd (ICSB), the consortium of locally-owned Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (CREC) from China (M) failed to meet the payment obligations despite being granted repeated extensions.
Seeking to pounce on anything negative about 1MDB, the likes of Wall Street Journal and the Pakatan politicians has also came out with messages that says China has refused to allow CREC to bring money out of China to invest or that the cancellation of this deal is proof that the Bandar Malaysia project is not-viable.
Some Pakatan politicians such as DAP's Tony Pua has opportunistically slammed the cancellation saying1MDB's rationalization plans have failed and that Arul Kanda must resign.
Strangely, these politicans were the people who had initially slammed the signing of this sale in end 2015 - claiming it is Jual Negara to China.
And now, they are slamming that the deal has been cancelled?
These politicians are strange creatures.
If the reason for non-payment is indeed due to the capital controls imposed by China to stop outflows of funds and protect their foreign reserves, then this is not the first or only case.
There have been many deals in the world that was affected by these capital controls as you can read in the South China Morning Post article here.
In fact, a month back the media had also highlighted the Forest City project in Johor was briefly affected by the capital controls.
However, in my opinion, there are many other reasons for the cancellation of this deal but chiefly, I believe there is simply no more need to rush and 1MDB and MOF can wait to extract bigger value and a better deal for Malaysia.
These are my reasons:
1. The political pressure on 1MDB has eased tremendously since 2015.
The period when the tender for Bandar Malaysia was called in Aug 2015 was also the period where the political pressure on 1MDB, PM Najib and the Government was the highest,
Hence there was a need to prove that 1MDB can monetize its assets and pay-off its big debts by itself without any assistance or bail-out for the government.
Due to the huge world-wide negative publicity on 1MDB then, it is likely that the Bandar Malaysia sale may not have gotten its best value.
On top of that, there was also uncertainty about Malaysia's economy in 2015 which came true when our economy slowed in 2016 - which would mean the Bandar Malaysia asset was not as attractive then.
Now that the political pressure and negative publicity of 1MDB has eased and our economy has started to recover strongly, it is likely that new bidders and more bidders may give a higher valuation for the strategic Bandar Malaysia land.
2, 1MDB cash-flow now is no longer squeezed compared to that period in 2015.
Recall that the sale of Edra for a combined equity and debt of about RM17 billion in 2015 has allowed 1MDB to clear off all short-term loans and bank debts - except for the 3 bonds due in the years 2038, 2022 and 2023 - and has left 1MDB with RM2 billion cash to pay off bond interests and working capital requirements.
1MDB had also successfully sold plots of the Tun Razak Exchange (TRX) land to various local and international buyers which also has helped with 1MDB's cashflow.
It is also important to note that last week's settlement between Abu Dhabi and 1MDB has allowed 1MDB to monetize US$2.43 billion worth of fund units.
On 28th April 2017, the Singapore Straits Times owned by the Singapore government reported:
"To overcome the hurdle, 1MDB agreed to waive its right to claim from Aabar the US$2.43 billion guarantee. In return, Abu Dhabi arranged for an undisclosed entity domiciled in the Seychelles to buy the units from 1MDB at the guaranteed value, to be settled by deferred payments from this month to October 2022, said a senior financial executive familiar with the matter.
Out of this US$2.43 billion, US$1.2 billion have to be paid to IPIC by the end of this year while the remaining US$1.23 billion (RM 5.32 billion) will be used to pay off half-yearly interests right up to the year 2022 for the US$3.5 billion bonds.
On top of this, 1MDB had also cleared the way to pay off its biggest single debt - which is this US$3.5 billion bonds where the Singapore Straits Times also said:
"Under the settlement, Malaysia and IPIC will enter into negotiations to resolve roughly US$3.5 billion in cash advances and payments 1MDB made to several Abu Dhabi entities. Should IPIC fail to make full settlement before the deadline of end-December 2020, the Malaysian government can pursue legal claims against IPIC."
Certainly there is new found cash-flow flexibility for 1MDB here.
The single biggest concern about the termination of the sale of Bandar Malaysia is really the RM2.4 billion Bandar Malaysia sukuk which is only due in various phases between the year 2021 to 2024 - but you can weigh that against the additional RM5.32 billion in cash-flow flexibility arising from the monetization of the fund units.
Therefore, there is certainly breathing space and cash-flow flexibility for MOF and 1MDB to extract the best value for Bandar Malaysia now which did not exist in the year 2015.
This is further evidenced by TRX's bold declaration early last month that there will be no more land sales in TRX for the next two to three years in order to unlock a higher land premium later,
3. The value and prospects for Bandar Malaysia have greatly increased since.
KUALA LUMPUR, 4 MEI: Perjanjian usahasama RM7.41 bilion bagi memiliki 60 peratus kepentingan Bandar Malaysia antara kondortium Iskandar Waterfront Holdings (IWH) dan China Railway Engineering Cooperation (CREC) akhirnya tidak menjadi kenyataan.
Ia berikutan perjanjian Jualan Saham yang dimeterai pada 31 Disember 2015 oleh TRX City Sdn Bhd dengan konsortium itu kini telah luput walaupun tempoh lanjutan diberikan.
Namun, yang menjadi persoalan saat ini ialah, adakah 1MDB akan memulangkan semula deposit sebanyak RM741 juta yang dibayar syarikat consortium IWH-CREC soal Ahli Parlimen Petaling Jaya Utara, Tony Pua Kiam Wee.
“Siapa yang akan membayar balik deposit RM741 juta yang dibayar kepada 1MDB oleh konsortium IWH
“Adakah 1MDB akan mengembalikan bayaran deposit, atau adakah Kementerian Kewangan perlu sekali lagi menyelamatkan 1MDB dengan mengeluarkan RM741 juta hasil kemelut hartanah 1MDB?” soalnya dalam satu kenyataan hari ini.
Menurut Tony, pengumuman TRX City Sdn Bhd semalam itu tidak mengejutkan.
Beliau malah turut mempersoalkan alasan di sebalik cadangan penjualan ekuiti itu kepada sebuah konsortium dengan jumlah aset bersih sebanyak hampir RM3.8 bilion atau kurang daripada separuh nilai urus niaga berkenaan.
“Bagi tahun kewangan yang berakhir pada 31 Disember 2015, keuntungan bersih syarikat itu sebelum cukai hanya RM170.4 juta.
“Walaupun IWH jelas cuba melakukan lebih daripada kemampuannya, 1MDB dengan bangga mengumumkan pada 31 Disember 2015 yang perjanjian penjualan IWH-Bandar Malaysia menandakan peristiwa penting terakhir dalam pelan rasionalisasi 1MDB seperti yang dikemukakan kepada kabinet Malaysia pada 29 Mei 2015,” katanya.
Perkara ini juga pernah dibangkitkan dalam soalan tambahan di Parlimen mengenai November tahun lalu dan April tahun ini.
Namun, jawapan parlimen yang diberikan hanya menyatakan bahawa konsortium IWH akan membayar faedah 6 peratus ke atas pembayaran yang belum dijelaskan sehingga jumlah berkenaan dibayar sepenuhnya pada 2023.
Rentetan dari kegagalan ini, beliau berkata Kementerian Kewangan terpaksa menangung faedah sukuk RM2.4 bilion yang diambil oleh 1MDB bagi projek Bandar Malaysia. -Roketkini.com
Bandar Malaysia: Is there still a need to rush?
The news that the Malaysian Ministry of Finance has called off the sales of 60% interest in Bandar Malaysia due to non-payment came as a surprise to many.
MOF had said that the buyer, IWH CREC Sdn Bhd (ICSB), the consortium of locally-owned Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (CREC) from China (M) failed to meet the payment obligations despite being granted repeated extensions.
Seeking to pounce on anything negative about 1MDB, the likes of Wall Street Journal and the Pakatan politicians has also came out with messages that says China has refused to allow CREC to bring money out of China to invest or that the cancellation of this deal is proof that the Bandar Malaysia project is not-viable.
Some Pakatan politicians such as DAP's Tony Pua has opportunistically slammed the cancellation saying1MDB's rationalization plans have failed and that Arul Kanda must resign.
Strangely, these politicans were the people who had initially slammed the signing of this sale in end 2015 - claiming it is Jual Negara to China.
And now, they are slamming that the deal has been cancelled?
These politicians are strange creatures.
If the reason for non-payment is indeed due to the capital controls imposed by China to stop outflows of funds and protect their foreign reserves, then this is not the first or only case.
There have been many deals in the world that was affected by these capital controls as you can read in the South China Morning Post article here.
In fact, a month back the media had also highlighted the Forest City project in Johor was briefly affected by the capital controls.
However, in my opinion, there are many other reasons for the cancellation of this deal but chiefly, I believe there is simply no more need to rush and 1MDB and MOF can wait to extract bigger value and a better deal for Malaysia.
These are my reasons:
1. The political pressure on 1MDB has eased tremendously since 2015.
The period when the tender for Bandar Malaysia was called in Aug 2015 was also the period where the political pressure on 1MDB, PM Najib and the Government was the highest,
Hence there was a need to prove that 1MDB can monetize its assets and pay-off its big debts by itself without any assistance or bail-out for the government.
Due to the huge world-wide negative publicity on 1MDB then, it is likely that the Bandar Malaysia sale may not have gotten its best value.
On top of that, there was also uncertainty about Malaysia's economy in 2015 which came true when our economy slowed in 2016 - which would mean the Bandar Malaysia asset was not as attractive then.
Now that the political pressure and negative publicity of 1MDB has eased and our economy has started to recover strongly, it is likely that new bidders and more bidders may give a higher valuation for the strategic Bandar Malaysia land.
2, 1MDB cash-flow now is no longer squeezed compared to that period in 2015.
Recall that the sale of Edra for a combined equity and debt of about RM17 billion in 2015 has allowed 1MDB to clear off all short-term loans and bank debts - except for the 3 bonds due in the years 2038, 2022 and 2023 - and has left 1MDB with RM2 billion cash to pay off bond interests and working capital requirements.
1MDB had also successfully sold plots of the Tun Razak Exchange (TRX) land to various local and international buyers which also has helped with 1MDB's cashflow.
It is also important to note that last week's settlement between Abu Dhabi and 1MDB has allowed 1MDB to monetize US$2.43 billion worth of fund units.
On 28th April 2017, the Singapore Straits Times owned by the Singapore government reported:
"To overcome the hurdle, 1MDB agreed to waive its right to claim from Aabar the US$2.43 billion guarantee. In return, Abu Dhabi arranged for an undisclosed entity domiciled in the Seychelles to buy the units from 1MDB at the guaranteed value, to be settled by deferred payments from this month to October 2022, said a senior financial executive familiar with the matter.
Out of this US$2.43 billion, US$1.2 billion have to be paid to IPIC by the end of this year while the remaining US$1.23 billion (RM 5.32 billion) will be used to pay off half-yearly interests right up to the year 2022 for the US$3.5 billion bonds.
On top of this, 1MDB had also cleared the way to pay off its biggest single debt - which is this US$3.5 billion bonds where the Singapore Straits Times also said:
"Under the settlement, Malaysia and IPIC will enter into negotiations to resolve roughly US$3.5 billion in cash advances and payments 1MDB made to several Abu Dhabi entities. Should IPIC fail to make full settlement before the deadline of end-December 2020, the Malaysian government can pursue legal claims against IPIC."
Certainly there is new found cash-flow flexibility for 1MDB here.
The single biggest concern about the termination of the sale of Bandar Malaysia is really the RM2.4 billion Bandar Malaysia sukuk which is only due in various phases between the year 2021 to 2024 - but you can weigh that against the additional RM5.32 billion in cash-flow flexibility arising from the monetization of the fund units.
Therefore, there is certainly breathing space and cash-flow flexibility for MOF and 1MDB to extract the best value for Bandar Malaysia now which did not exist in the year 2015.
This is further evidenced by TRX's bold declaration early last month that there will be no more land sales in TRX for the next two to three years in order to unlock a higher land premium later,
3. The value and prospects for Bandar Malaysia have greatly increased since.
Remember that the tender for Bandar Malaysia was called in August 2015 and the signing of the sale was in December 2015 amidst great negative publicity and a slow-down in the economy then which has now improved on both counts.
Since then, land values in the Klang Valley has increased and much have been done to increase the prospect or remove the uncertainties for Bandar Malaysia.
For one, the MRT2 Sungai Buloh–Serdang–Putrajaya line has started construction and will have two stations in Bandar Malaysia - SSP21 and SSP22.
Additionally, the Singapore-Kuala Lumpur High Speed Rail-line agreement was finally signed on Dec 14, 2016 between the governments of Singapore and Malaysia which also confirms Bandar Malaysia to be the terminus station.
This signing moves it from being a planned HSR project to a confirmed HSR project in progress.
High-Speed Rail official signing in December 2016
The realignment of the Duta-Ulu Kelang Expressway Phase 3 (DUKE 3) expected to run along the border Bandar Malaysia has also been signed by the government in January 2016.
Certainly the confirmed and increased connectivity has further increased the value of Bandar Malaysia since the tender and signing of sale in 2015.
At the time, the total value of Bandar Malaysia based on the 60% sale price of RM7.41 billion was RM12.35 billion for the 486 acres land or 21.17 million square feet.
That works out to just RM583 per square feet.
Compare this to the plots of land sold in nearby TRX including Tabung Haji's acquisition of land in TRX for RM2,780 psf and Mulia Group's acquisition of land in TRX for RM4,490 psf - in line with other commercial land deals in the Jalan Ampang and KLCC areas that were transacted around the RM3,000 to RM3,500 psf range.
And you must remember also that once the HSR is completed, Bandar Malaysia is just 90 minutes away from Singapore by rail.
Singapore commercial land prices are very high. In Oct 2016, a 1.1 Hectare plot of land was sold for SGD2.57 billion (RM7.96 billion). This works out to a staggering RM67,228 psf.
Even if Bandar Malaysia land is worth only 5% of Singapore land, it is already RM3,361 psf - much higher than the RM583psf in the now aborted sale.
Additionally, 1MDB and MOF, as the single largest shareholder in Bandar Malaysia also benefits from the 16 months planning and publicity put into developing Bandar Malaysia.
Aborting the sale does not mean that the High Speed Rail project or Bandar Malaysia project has been cancelled. It just mean that there are possible new JV partners coming in. MOF continues to plan and develop the site while waiting for new partners.
ConclusionThe financial markets have decided that the initial buyers are the losers in this cancellation. Share prices of locally listed IWH and its sister company Ekovest was punished by the markets - with Ekovest dropping as much as 30% within a single day after the cancellation of the sale was announced.
The cancellation of the sale certainly benefits the Malaysian Govt more than the private companies which got punished badly.
With the reasons given above, MOF's bold decision to cancel the sale agreement due to delayed payments is a positive step to ensure Malaysia and the Rakyat gets a better deal as it puts 1MDB and MOF in a much stronger and un-pressured position to extract higher values.
However, all is not cast in stone yet as IWH and China Rail has strongly protested the cancellation while PM Najib is scheduled to attend a Belt and Road forum in China next week where Malaysia is expected to sign a Memorandum of Understanding on basic infrastructure development with China.
I would not be surprised if Malaysia and the buyers revive the sale -perhaps with penalties for late payment or even revised terms and valuation more favourable to Malaysia. After all, the JV for Bandar Malaysia was one of those deals signed in PM Najib's historic visit to China in November 2016 where President Xi Jinping was a witness.
Regardless of the outcome, the evidence shows that the move by MOF to cancel the sale of Bandar Malaysia yesterday was the right move to extract better value for Malaysia.
Since then, land values in the Klang Valley has increased and much have been done to increase the prospect or remove the uncertainties for Bandar Malaysia.
For one, the MRT2 Sungai Buloh–Serdang–Putrajaya line has started construction and will have two stations in Bandar Malaysia - SSP21 and SSP22.
Additionally, the Singapore-Kuala Lumpur High Speed Rail-line agreement was finally signed on Dec 14, 2016 between the governments of Singapore and Malaysia which also confirms Bandar Malaysia to be the terminus station.
This signing moves it from being a planned HSR project to a confirmed HSR project in progress.
High-Speed Rail official signing in December 2016
The realignment of the Duta-Ulu Kelang Expressway Phase 3 (DUKE 3) expected to run along the border Bandar Malaysia has also been signed by the government in January 2016.
Certainly the confirmed and increased connectivity has further increased the value of Bandar Malaysia since the tender and signing of sale in 2015.
At the time, the total value of Bandar Malaysia based on the 60% sale price of RM7.41 billion was RM12.35 billion for the 486 acres land or 21.17 million square feet.
That works out to just RM583 per square feet.
Compare this to the plots of land sold in nearby TRX including Tabung Haji's acquisition of land in TRX for RM2,780 psf and Mulia Group's acquisition of land in TRX for RM4,490 psf - in line with other commercial land deals in the Jalan Ampang and KLCC areas that were transacted around the RM3,000 to RM3,500 psf range.
And you must remember also that once the HSR is completed, Bandar Malaysia is just 90 minutes away from Singapore by rail.
Singapore commercial land prices are very high. In Oct 2016, a 1.1 Hectare plot of land was sold for SGD2.57 billion (RM7.96 billion). This works out to a staggering RM67,228 psf.
Even if Bandar Malaysia land is worth only 5% of Singapore land, it is already RM3,361 psf - much higher than the RM583psf in the now aborted sale.
Additionally, 1MDB and MOF, as the single largest shareholder in Bandar Malaysia also benefits from the 16 months planning and publicity put into developing Bandar Malaysia.
Aborting the sale does not mean that the High Speed Rail project or Bandar Malaysia project has been cancelled. It just mean that there are possible new JV partners coming in. MOF continues to plan and develop the site while waiting for new partners.
ConclusionThe financial markets have decided that the initial buyers are the losers in this cancellation. Share prices of locally listed IWH and its sister company Ekovest was punished by the markets - with Ekovest dropping as much as 30% within a single day after the cancellation of the sale was announced.
The cancellation of the sale certainly benefits the Malaysian Govt more than the private companies which got punished badly.
With the reasons given above, MOF's bold decision to cancel the sale agreement due to delayed payments is a positive step to ensure Malaysia and the Rakyat gets a better deal as it puts 1MDB and MOF in a much stronger and un-pressured position to extract higher values.
However, all is not cast in stone yet as IWH and China Rail has strongly protested the cancellation while PM Najib is scheduled to attend a Belt and Road forum in China next week where Malaysia is expected to sign a Memorandum of Understanding on basic infrastructure development with China.
I would not be surprised if Malaysia and the buyers revive the sale -perhaps with penalties for late payment or even revised terms and valuation more favourable to Malaysia. After all, the JV for Bandar Malaysia was one of those deals signed in PM Najib's historic visit to China in November 2016 where President Xi Jinping was a witness.
Regardless of the outcome, the evidence shows that the move by MOF to cancel the sale of Bandar Malaysia yesterday was the right move to extract better value for Malaysia.
NOTA KAKI
Apa yang dapat kita rumuskan ialah kenyataan pembangkang terutama Tony Pua sangat bodoh. Dia tak faham kandungan perjanjian dengan mudah cuba memperbodoh pengikutnya dengan tuduhan rakyat akan menanggung kos deposit terhadap pembatalan Bandar Malaysia.. Tolong baca lah di sana sudah ada jawapan.
Pua paling bangkai kerana semasa perjanjian dimetraikan dia menuduh Najib menjual tanah kepada China sekarang bila perjanjian terbatal kerana engkar perintah kenapa duit rakyat pula yang hendak diambil di bayar kepada syarikat dari China.
Tahu kah kamu wahai Tony puaka. kerana hasutan pembangkang juga lah IPO 1mdb gagal disenarai kan di papan utama .
Tahun-tahun 80an dan 90an kita selalu dipaparkan di berita tv bahawa banyak syarikat yang senaraikan di bursa saham semuanya terlebih langganan.
Sebab apa terjadi demikian? Jawapannya ialah kerana pada masa itu tiada Tony Puaka. Semua pelabur terutama orang Cina yang sememangnya pelabur utama akan membeli saham saham tanpa rasa ragu .
Hal ini berubah sejak wujudnya makhluk yang bernama Tony Pua yang gemar menghasut dan memperlekehkan usaha kerajaan untuk membangunkan ekonomi negara.
Tony Pua pula di lihat sentiasa mensabotaj sebarang usaha kerajaan untuk merancakkan ekonomi negara.
TONY PUA HANYA TAHU KUTUK...BERJAYA PUN SALAH, GAGAL PUN SALAH..
