Menara Felcra, other buildings must be sold
> Project will proceed and only released if good offer received, says Azmin
KUALA LUMPUR: Economic Affairs Minister Datuk Seri Mohamed Azmin Ali ( pix) said a decision to sell the Menara Felcra project has been made to save the stateowned land development authority, as it was no longer able to foot the bill for the project.
It was necessary for the mixed development project in Jalan Semarak to be sold in order for Felcra Berhad to fulfil its commitments to its some 100,000 members, he said.
“This is a strategy to save Felcra. It needed to be saved so that it doesn’t affect its commitments to its 96,137 members.
“There must be some kind of assurance over its commitments, including annual dividends and cost of living assistance,” he told the Dewan Rakyat yesterday.
Mohamed Azmin said the RM1.1 billion project was initiated to raise the value of the plot of land there, before a change to the terms in the tender contract saw the responsibility to finance it falling on Felcra.
“This meant Felcra is exposed to financial risk liabilities. And like any other company, Felcra needs to ensure its finances are secured and its cash flow is not affected.
Felcra chairman Datuk Mohd Nageeb Abdul Wahab had earlier this week announced plans to sell the unfinished Menara Felcra and related mixed development as its coffers had run dry.
The 4.62-acre project would include the 35-storey Menara Felcra office tower, a 43storey luxury residential building, a mall and an international convention centre.
While saying that the project would not be postponed or cancelled, Mohamed Azmin added that the project would only be sold if Felcra receives a good offer.
“If there is a good offer to monetise this asset, we will consider it. Felcra can choose to hold on to its tower and sell the other assets, namely the apartments and commercial block, but these are all subject to offers.
“We do not wish to sell the assets where the return is not beneficial to Felcra.”