KUALA LUMPUR, May 3 — TRX City Sdn Bhd said today the share sale agreement (SSA) with Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corperation (M) Sdn Bhd (CREC), regarding the sale of 60 per cent of the issued and paid-up capital of Bandar Malaysia Sdn Bhd, has lapsed due to the failure of the purchasing parties to fulfil payment obligations.

Following the SSA signing, IWH and CREC assigned its benefits and responsibilities to IWH CREC Sdn Bhd (IWH CREC) on July 21 last year.

TRX City in a statement said despite repeated extensions being granted, IWH CREC failed to meet the payment obligations outlined in the conditions precedent under the SSA, which was signed on December 31, 2015.

"As a result, the SSA between the parties stands null and void with immediate effect,” it said.

Following that, it said given a significant appreciation in the value of the Bandar Malaysia land, TRX City’s sole shareholder, the Ministry of Finance, would now be retaining 100 per cent ownership of the site to ensure that the Malaysian people benefit from its development in its entirety.

It said TRX City would immediately be inviting expressions of interest for the role of master developer of Bandar Malaysia, with full ownership being preserved by the Ministry of Finance.

"The selection process will involve very strict criteria, including track record, speed of delivery and financial capability for such large-scale development. This is to enhance all aspects of Bandar Malaysia, including its role as a business, transport, residential and tourism hub.

"The steps taken today will ensure that there is no detrimental impact on the long-term development of Bandar Malaysia and that, upon its completion, the site will serve the national interest to an even greater extent than before,” it said.

It said Bandar Malaysia would be a catalyst for economic growth and national development.

"The biggest development site in Malaysia in a key strategic position, it will offer many business, investment and employment opportunities, including Kuala Lumpur Internet City, the hub for the new Digital Free Trade Zone,” it said.

Bandar Malaysia would also be Malaysia’s transport nucleus, connecting the Kuala Lumpur-Singapore high-speed rail, MRT lines, KTM Komuter, Express Rail Link and 12 highways. — Bernama