Malaysia Johor Regent TMJ’s plan to sell a tract of land in the heart of Singapore faces a complication: a tax bill that may exceed $1 billion. A levy known as a land betterment charge has emerged as a sticking point in negotiations between some prospective buyers and the current owner, the eldest son of Malaysia’s billionaire king, according to people familiar with the matter. The owner wants any buyer to foot the bill, the people said, asking not to be identified because the information is private.

The land, located in Singapore’s prime district, is being marketed by the Johor royal family as a high-value development opportunity. However, the potential land betterment charge—calculated based on the increase in land value due to state-led infrastructure—has deterred several interested parties. The charge could significantly reduce net proceeds from the sale, making the deal less attractive unless the buyer assumes the liability.

Negotiations remain ongoing, with no agreement reached on who will bear the tax burden. The situation underscores the complexities of cross-border real estate deals involving royalty and state-linked fiscal policies. Both Johor and Singapore authorities have not commented publicly on the matter as of the report’s publication.