1MDB land parcels in Selangor and Penang received significant proposals: Arul Kanda

PETALING JAYA: 1Malaysia Development Berhad (1MDB) monetisation of the company's land parcels in Selangor and Penang received significant proposals.
The state's investment arm president and group executive director Arul Kanda Kandasamy said it is part of the company's plan to monetise the company's land parcels in Air Itam and Pulau Indah through joint ventures or outright sales.
"Subsequently, this was confirmed in the rationalisation plan presented to Cabinet on 29 May 2015."
"I am pleased to update that we have received significant expressions of interest in both land parcels," Arul said in a statement.
Arul added that the company will appoint an independent real estate consultant to assist in reviewing the proposals and will provide an update of the development in the next two weeks.
The Pulau Indah land deal is under tight scrutiny as 1MDB had allegedly received a US$150 million (RM562 million) loan from the Export-Import Bank (Exim Bank) for the purchase.
DAP had claimed that the land deal was an abuse of power as the bank was not mandated to provide loans for domestic property purchases.
The liberal party's national publicity chief Tony Pua said the government's letter of support to Exim Bank, which is owned by the Finance Ministry, was a "proof" that the cabinet is abusing its powers to conduct a "double bailout" of 1MDB and Tadmax Resources Bhd, which had sold the land to 1MDB in February.
However, the Finance Ministry, through its Deputy Finance Minister Datuk Chua Tee Yong said all loans given by the Government-owned bank to customers were within its mandate to support Malaysian companies involved in overseas markets as well as giving import loan support to local companies in strategic investments for the country's economy.
1MDB also had purchased the land in Air Itam, Penang, for RM1.1 billion.
The company, which is owned by the finance ministry is under RM42 billion debt.