AZRB clinches RM386.6 million mixed development project

PETALING JAYA: Ahmad Zaki Resources Bhd (AZRB) has clinched a mixed development project worth RM386.65 million, which forms part of the multi-billion ringgit redevelopment of the 113-year old Kampung Baru in Kuala Lumpur.

In a stock exchange filing yesterday, AZRB said its unit, Ahmad Zaki Sdn Bhd, had received a letter of acceptance of tender from Uda Legasi Sdn Bhd, a unit of Governmentowned UDA Holdings, which is playing a prominent role in the redevelopment project.

The development comprises a 47-storey apartment building block with 639 units of apartments, a 29-storey commercial office block, as well as one level of basement parking.

The contract spread over 40 months is expected to contribute positively to its earnings from the financial year ending Dec 31, 2015 onwards.

The Kampung Baru redevelopment is a 20-year project under the Kampung Baru Detailed Development Master Plan 2020, which is expected to be completed in 2035 and can accommodate 77,000 people with 17,500 residential units.

However, the redevelopment of the Malay enclave in the heart of Kuala Lumpur had stalled since the incorporation of Kampung Baru Development Corp (KBDC) in 2012.

KBDC was set up as a mediator between landowners and potential investors in developing the area. However, problems arose when rumours surfaced that it was acquiring the land for its own gain.

Attempts and plans to redevelop it have been thwarted because it is necessary to get all the small landowners to agree to sell their land before redevelopment can take place.

Another stumbling block in getting land owners’ approval was that valuers had set the land value too low despite the plot’s value having risen dramatically over the years.

Early this year, UDA Holdings chairman Datuk Johari Abdul Ghani said about 88% of the landowners have agreed to the sale, which will allow implementation of a master plan to begin.