Deal to cut 1MDB debt axed

The site of the Tun Razak Exchange financial district, which is owned by 1MDB, in Kuala Lumpur.
The site of the Tun Razak Exchange financial district, which is owned by 1MDB, in Kuala Lumpur.PHOTO: BLOOMBERG

Malaysia's biggest real estate project has dropped its master developer and is looking for a new one.

The Ministry of Finance company that owns Bandar Malaysia said last night that it cancelled a deal with a Malaysia-China consortium to buy a 60 per cent stake valued at RM7.41 billion (S$2.4 billion) after the group failed to meet payment obligations.

The decision has a direct bearing for 1Malaysia Development Berhad as the 2015 deal was to help the state fund reduce its debt burden. The Finance Ministry said it will retain 100 per cent ownership of the project.

SEE TOP OF THE NEWS

A version of this article appeared in the print edition of The Straits Times on May 04, 2017, with the headline 'Deal to cut 1MDB debt axed'. Print Edition | Subscribe