KUALA LUMPUR: A Malaysian-Chinese consortium that had planned to buy a majority stake in a property development project owned by a former unit of state fund 1MDB on Friday refuted allegations that it had failed to make necessary payments.

Earlier this week, TRX City Sdn Bhd - a former unit of state fund 1Malaysia Development Bhd (1MDB) now owned by the Malaysian Finance Ministry - said the deal to sell 60 per cent of Bandar Malaysia had lapsed because the consortium failed to meet payment obligations.

In a statement on Friday, Iskandar Waterfront Holdings (IWC), owned by Malaysian tycoon Lim Kang Hoo, and China Railway Engineering Corp (CREC) said TRX's allegation that the share sale agreement has lapsed was "unacceptable."

The consortium has fulfilled all the required payment obligations under the agreement on its part towards TRX, it said. -- REUTERS