PRIVATISATION PACT
RETRO Highland Sdn Bhd, a joint venture between SP Setia Bhd and Tradewinds Corp Bhd, has entered into an agreement with Kuala Lumpur City Hall to build a Quality Sustainable People Housing project in Cheras. This is in line with urban renewal initiatives
SP Setia Bhd, via its 50 per cent-owned Retro Highland Sdn Bhd, has entered into a privatisation agreement with Kuala Lumpur City Hall (DBKL) to construct a Quality Sustainable People Housing (QSPH) project in Cheras.
SP Setia said in a Bursa Malaysia filing yesterday Retro Highland signed the agreement for the planning, design, construction and commissioning of the QSPH project.
Tradewinds Corp Bhd owns the other 50 per cent stake in Retro Highland.
The QSPH project entails the construction of 3,971 residential units, 112 units of shops, a market and public facilities.
“The QSPH development is in line with the government’s intention to encourage the private sector to form partnerships with DBKL to undertake urban renewal initiatives under the Kuala Lumpur Structure Plan 2020.”
The privatisation will be undertaken in two phases. Phase 1 involves the development of 1,192 residential units. Phase 2 will have 2,779 residential units, 112 shops, 244 market lots and public facilities.
The company said the initial phases will involve the renewal of the 3,971 units under Taman Ikan Emas cluster houses, Sri Melaka low-cost flats, Sri Pulau Pinang low-cost flats and longhouses, Sri Johor low-cost flats under the government’s public housing scheme, common facilities, shops, stalls and a market.
Phase 1 will cost RM344.79 million while Phase 2 will cost RM835.12 million.
SP Setia said there will also be a cash consideration of RM14.99 million. If the construction cost of the development is lower than the cost estimated for both phases, an additional cash consideration for the difference will be paid to DBKL accordingly.
It said Retro Highland will also be awarded 21ha of leasehold land in Cheras by DBKL in return for the QSPH development.
The developer said the RM1.19 billion exchange land is planned for a mixed-development project with a gross development value of about RM11.03 billion over 11 years.
SP Setia said the proposed developments are expected to be funded via bank borrowings and internally-generated funds.
It said the exchange land will increase the company’s landbank in key areas here and allow the group to continue to strengthen its presence in the Klang Valley.