Twelve companies have submitted proposals for the final stage of evaluation to participate as development partners in the 486-acre Bandar Malaysia project in Sungai Besi

KUALA LUMPUR: Twelve companies have submitted proposals for the final stage of evaluation to participate as development partners in the 486-acre Bandar Malaysia project in Sungai Besi.

CH Williams Talhar and Wong (WTW), the transaction advisor for the Bandar Malaysia request for proposal (RFP), said on Tuesday the 12 final stage bidders comprised of domestic private developers, GLCs and foreign parties either submitting independently or as a consortium.

The earlier expression of interest (EOI) stage drew strong interest from 40 local and global players including Singapore, China, Japan, South Korea and Australia. Under the procedures, the bidders received an investment memorandum that outlined Bandar Malaysia’s development vision and its proposed master plan.

To progress to this final selection stage, these companies had to showcase their track record, branding and financial capabilities to be a development partner for Bandar Malaysia. WTW’s deputy managing director Danny Yeo said there were highly competitive responses which were above and beyond its expectations.

He said WTW would now review the proposals and shall provide its recommendation to 1MDB Real Estate (1MDBRE), which would then shortlist selected final bidders before entering into financial and share sale agreement negotiations. The commercialisation of Bandar Malaysia was part of 1MDB’s rationalisation plan which was presented to the Cabinet on May 29.

The CEO of 1MDBRE, Datuk Azmar Talib said 1MDB was encouraged by the high quality of bids received, and it was confident in the success of the process.

“It is our plan to shortlist selected final bidders, enter detailed negotiations and execute a binding transaction by the end of 2015,” he said.

Azmar said in making a final decision, 1MDB’s board of directors would be guided by, among other things, value maximisation to 1MDB’s shareholders, deal certainty, and terms that are fair and reasonable. Bandar Malaysia will be a mixed-use urban development that is expected to serve as a catalyst for the transformation of Greater Kuala Lumpur.

The development will serve as Kuala Lumpur’s gateway for the high-speed rail-line to Singapore and become a central transport hub in the city via MRT lines 2 and 3, KTM Komuter, ERL, and future access to major highway networks.