KUALA LUMPUR, Dec 31 ― Arul Kanda Kandasamy said today that 1Malaysia Development Bhd (1MDB) has yet to decide on transferring its remaining 40 per cent equity share of the Bandar Malaysia land bank to the Finance Ministry (MoF).

The 1MDB president said the firm will only make the call later, adding that it may also keep its stake as a strategic property to help boost earnings.

“As part of the rationalisation plan, there was consideration to transfer the remaining 40 per cent to MoF but as of now, no decision has been made,” Arul told reporters here after announcing 1MDB’s sale of 60 per cent stake in Bandar Malaysia to a consortium comprising Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering  Corporation Sdn Bhd.

Questions were raised about 1MDB’s remaining stake in the 486 acre-land and if Putrajaya would end up buying it back at an inflated price, despite having sold the asset to 1MDB at below market rate.

Petaling Jaya Utara DAP MP Tony Pua had previously urged Putrajaya to explain transparently how it intends to make the Tun Razak Exchange (TRX) and Bandar Malaysia, both 1MDB companies, separate independent entities owned by the MoF.

Finance Minister II Datuk Seri Husni Hanadzlah had in May this year announced that TRX and Bandar Malaysia will be established as standalone entities and that the MoF will remain a key shareholder in both.

Arul Kanda today refused to take more queries on the matter when pressed by reporters, saying he will address the matter at a separate press conference.

Earlier this morning, it was announced that 1MDB will receive RM7.42 billion from its Bandar Malaysia deal with the IWH-CREC consortium.

The sale is part of the state-owned investment firm’s third and final rationalisation plan to settle its outstanding debt.

1MDB is set to receive an initial deposit of 10 per cent or RM741 million from the sum, with the rest upon completion of the transaction expected by end of June 2016.

The IWH-CREC consortium valued the land parcel at RM12.35 billion.

The consortium known as IWH-CREC Sdn Bhd is a 60:40 joint venture between IWH and CREC.

The Johor state government owns 40 per cent of IWH through Kumpulan Prasarana Rakyat Johor Sdn Bhd.

*A previous version of this story contained some errors that have since been corrected.