CIVIL Service Pension fund (KWAP) will only decide on investing in the Tun Razak Exchange (TRX) and Bandar Malaysia after if studies the development plans for the two mammoth property projects.
KWAP chief executive officer Wan Kamaruzaman Wan Ahmad said the fund, which manages government pensions, will also only consider investing in the two projects if there is a viable partner.
“We have to look at the opportunities, who are going to be the master developers,” Wan Kamaruzaman told reporters after launching KWAP’s new offices.
“We will also see if we can partner with others as we ourselves don’t have the capacity or the ability to do it alone.”
Previous reports had speculated that KWAP was interested in buying TRX land for its new headquarters. This was subsequently denied by KWAP officials.
TRX and Bandar Malaysia were two flagship property projects in the heart of Kuala Lumpur that were previously owned by state investment body 1Malaysia Development Berhad (1MDB).
After investigations started into 1MDB over fraud, money laundering and mismanagement, the two projects were taken over by the Finance Ministry.
In past reports, TRX’s master developer TRX City Sdn Bhd had announced that 60% of all the land in the 70-acre TRX project has been sold.
On the other hand, Bandar Malaysia ran into trouble after the ministry terminated its former master developer, IWH-CREC Sdn Bhd, for failing to pay RM7.41 billion for a 60% stake in the project as scheduled.
IWH-CREC is a joint venture between China Railway Engineering Corp (CREC) and Iskandar Waterfront Holdings (IWH).
It was reported that China’s Dalian Wanda has emerged as the front runner to become the project’s new master developer.