KUALA LUMPUR, Dec 23 — An investment arm of Petroliam Nasional Bhd (Petronas), KLCC (Holdings) Sdn Bhd (KLCCH), announced today that it had agreed to buy 486 acres of land from Bandar Malaysia Sdn Bhd (BMSB).

It said the agreement was signed on October 4 this year, following a denial by its subsidiary KLCC Property Sdn Bhd (KLCCP).

"KLCCH will undertake the development based on commercial viability over a long-term period,” it said in a brief statement.

"The development is envisioned as an international business hub and a liveable and inclusive city for the community.

Earlier, KLCCP had denied it was buying over the land for over RM10 billion, as reported by financial news The Edge Malaysia.

The Edge reported that the sale was made in two tranches since BMSB needs to meet debt obligations.

The report claimed that BMSB’s audited balance sheet showed that it had RM993 million in borrowings and RM2.8 billion in amount owing to its immediate holding company TRX City Sdn Bhd.

KLCCH is the holding firm for the KLCC Group. It owns 65 per cent of the shares in the KLCC Stapled Group, which includes KLCCP and the KLCC Real Estate Investment Trust.

As Petronas’ property arm, KLCCH develops and manages real estate properties in the Kuala Lumpur City Centre and Putrajaya, and is the master developer of the 100-acre KLCC land which houses the Petronas Twin Towers.

It has businesses across property investment and development, asset management, project management and provider of chilled water and electricity.

Bandar Malaysia is a large-scale development project located in Kuala Lumpur, Malaysia, aimed at becoming a mixed-use urban hub with residential, commercial, and transit-oriented facilities.

The site was originally used as the Sungai Besi Air Base, a military airbase before it was decommissioned for redevelopment.