How does the new Bandar Malaysia deal differ from the original agreement?

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The Bandar Malaysia Deal Accelerates Payment Terms and Increases Advance Payment

The revived Bandar Malaysia deal significantly alters the payment structure for IWH-CREC's acquisition of a 60% equity stake in Bandar Malaysia Sdn Bhd (BMSB). Under the new terms, the payment period has been condensed from seven years to three years, and IWH-CREC will provide an additional RM500 million as an advance payment, supplementing the initial RM741 million deposit.
Accelerated Payment Schedule

The original agreement stipulated a seven-year timeframe for IWH-CREC to complete its payments for the 60% equity in BMSB. This staggered payment schedule has now been shortened to a more compressed three-year period, a change intended to benefit the Malaysian government. The total land valuation for this stake remains anchored at RM12.35 billion.
Increased Advance Payment

In addition to the initial deposit of RM741 million, IWH-CREC has agreed to an enhanced advance payment. This additional RM500 million payment further accelerates the financial flow to the government as part of the revived deal. This revised payment structure was part of the Reinstatement of Bandar Malaysia Framework Agreement signed in April 2019, following government approval to reinstate the project.
Project Context and Stakeholders

Bandar Malaysia represents the largest development land parcel situated in the heart of Kuala Lumpur, located at the former Royal Malaysian Air Force base on Jalan Sungai Besi. TRX City Sdn Bhd (TRXC), a subsidiary wholly owned by the Minister of Finance (Inc), is the seller of the equity stake. IWH-CREC, the acquiring consortium, is a joint venture between Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CRECM).

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How does the new Bandar Malaysia deal differ from the original agreement?

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