Plaza Rakyat in Jalan Pudu to be revived soon.
THE deal is sealed.
Buyers of Plaza Rakyat project, which was abandoned since 2007, are seeing light at the end of the tunnel, as Kuala Lumpur mayor Datuk Mohd Amin Nordin and Profit Consortium Sdn Bhd owner Tan Sri Abdul Samad Alias on Friday signed a memorandum of understanding to revive the project.
Amin Nordin said Profit Consortium paid RM70mil or 10% of the total price of the property to Kuala Lumpur City Hall (DBKL) as an initial payment.
“Profit Consortium has also secured an investment partner, Debao Property Development Ltd from China, for this project.
“I know the buyers have waited for a very long time, but now there is light at the end of the tunnel. It is too early to tell when the buyers will be compensated.
“I hope with the revival of this project, it will become a landmark in the Pudu area,” he said.
Profit Consortium lawyer Derek Fernandez said the company was obligated under the agreement to handle all legal claims.
“The buyers need to be patient as there is some work that needs to be done before they are contacted.
“We need to set up a registry of buyers. There are some data with DBKL and we will also put up advertisements in the newspaper next year.
“The individuals will need to be contacted to provide documentation regarding their purchase, which needs to be assessed. Those with and without legal basis will be considered,” he said, adding the RM40mil allocation announced by Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor was only for legally valid claims.
Tengku Adnan had told Parliament the selling price for the site was RM740mil, of which RM700mil was for the outright sale of the land and RM40mil was to resolve the issue with the buyers.
Fernandez said apart from draining out the water that had pooled in the basement of the partially constructed building to assess the safety of the structure, Profit Consortium also had to get necessary approvals as it involved government land, as well as the development order and building plans.
Kuala Lumpur City Hall (DBKL) took vacant possession of the abandoned project site last year, after repaying a RM150mil loan taken by its earlier developer Plaza Rakyat Sdn Bhd (PRSB) from a consortium of banks.
It was reported that more than 200 people had invested in the project which was supposed to be completed in 2007. Many of buyers are senior citizens and some have passed on.
One of the buyers, Steven Yong said he was happy with the progress and hoped Profit Consortium would speed up the compensation process.
“I am getting old and I hope this settlement will move fast from now onwards,” he said.